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TEXT-S&P:Gibson Energy acquisition announcement crdt ntrl

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(The following statement was released by the rating agency)

Oct 12 - Standard & Poor's Ratings Services today said that its ratings on Gibson Energy ULC(BB-/Stable/--) are unaffected by the company's announcement that it plans to acquireOMNI Energy Services Corp. (not rated) for US$445 million. Gibson has also agreed to sellsubscription receipts for gross proceeds of C$350 million to fund theacquisition. It will finance the rest of the acquisition with cash andborrowings under its US$375 million revolving credit facility.

We view this announcement as neutral from a credit perspective; however, weacknowledge that management is financing the acquisition conservatively,because it is funding about 75% (85% if it exercises its 15% over-allotmentoption) of the acquisition through equity. Although we believe that the OMNIacquisition will improve Gibson's geographic diversity, we believe that itdoes not improve the company's business risk profile enough to raise ourratings. Pro forma OMNI's 2012 EBITDA, we expect Gibson's debt-to-EBITDA toimprove to 2.5x-2.7x from 3.1x as of Jun 30, 2012. Should OMNI's EBITDA belower than expected, Gibson has adequate cushion under its balance-sheet debtsuch that credit measures will not weaken if OMNI's EBITDA drops by 50%.

((Bangalore Ratings Team, Hotline:+91 80 4135 5898Jyothsna.BN@thomsonreuters.com,Group id: BangaloreRatings@thomsonreuters.com,Reuters Messaging:Jyothsna.BN.thomsonreuters.com@reuters.net))

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