DBRS Morningstar Assigns Rating of BBB (low) with a Stable Trend to Reliance LP’s $400 Million 2.67% Senior Secured Notes Due August 1, 2028

DBRS Limited (DBRS Morningstar) assigned a rating of BBB (low) with a Stable trend to Reliance LP’s (Reliance or the Company) $400 million 2.67% Senior Secured Notes (the Notes) maturing August 1, 2028. The Notes settled on April 14, 2021. The rating assigned is based upon the rating on already-outstanding series of the above-mentioned debt instrument.

The Notes will be senior secured obligations of Reliance and will rank pari passu in right of payment with all other secured obligations. The Company will use the net proceeds from the sale of the Notes to repay the $171 million Senior Secured Notes maturing August 2, 2021, and the $100 million Senior Secured Term Loan Credit Facility maturing August 8, 2021, and to reduce the Senior Secured Credit Facility (revolver), with any excess proceeds thereafter to be used for general corporate purposes.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

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

The principal methodology is Rating Companies in the Services Industry (January 29, 2021, https://www.dbrsmorningstar.com/research/372947), which can be found on dbrsmorningstar.com under Methodologies & Criteria. Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (February 3, 2021, https://www.dbrsmorningstar.com/research/373262).

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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