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Bulletin: Rating On SemGroup Corp. Is Unchanged After Master Limited Partnership Announcement Jun 11
Standard & Poors, June 2011
NEW YORK (Standard & Poor's) June 29, 2011--Standard & Poor's Ratings Services said today that its corporate credit rating and outlook on SemGroup Corp. (B/Stable/--) will not be affected by the company's announcement that it will pursue the formation of a master limited partnership (MLP) that will initially acquire certain assets from its SemCrude division. SemGroup intends to conduct an initial public offering of common units and use the residual proceeds to reduce its bank debt. SemGroup will own the MLP's general partner, all of the incentive distribution rights, and a majority limited partnership interest in the MLP. While we consider the formation of the MLP credit negative, due in part to the aggressive distribution policy inherent to the MLP...
Companies mentioned in this report are: SemGroup Corporation
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Research type: News
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