DBRS Finalizes Ratings of Southern Pacific Resource Corp. at B (low), Stable Trends

DBRS has today finalized its provisional rating of B (low) on Southern Pacific Resource Corp.’s (STP or the Company) $260 million of 8.75% Senior Secured Second Lien Notes due January 25, 2018 (the Notes, with a recovery rating of RR4), as well as the Company’s provisional Issuer Rating of B (low), both with Stable trends. DBRS assigned the provisional ratings on January 11, 2013 (see related press release).

The Notes, secured by a second-priority lien, will be subordinated to any future senior secured first-lien indebtedness of the Company. It is our understanding that proceeds from the sale of the above-noted securities will be used to pay down indebtedness under STP’s existing secured second-lien term loan.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodology is Rating Oil and Gas Companies (April 2011), which can be found on our website under Methodologies.