from SNL Power Daily with Market Report
S&P puts Macquarie Infrastructure on CreditWatch negative on $2.69B asset sale
Byline: Usman Khalid
S&P Global Ratings placed Macquarie Infrastructure Corp.'s BB issuer credit rating on CreditWatch with negative implications following the company's announcement of a $2.69 billion asset sale.
On Nov. 9, Macquarie Infrastructure, or MIC, announced that it had struck a deal to sell its bulk liquid storage and handling business, IMTT Holdings LLC, to an affiliate of Riverstone Holdings LLC.
IMTT accounts for 45% of MIC's EBITDA and the sale diminishes its scale and diversification, the rating agency said in a Nov. 12 report. As such, MIC would now have to derive about 80% of its EBITDA from Atlantic Aviation and 20% from Hawaii Gas.
The rating agency also placed its BB issue-level credit rating on MIC's senior unsecured debt on CreditWatch with negative implications.
MIC plans to to use the sale proceeds to pay a special dividend of approximately $10.75 per share and to repay or offset holding company level debt of approximately $400 million.
