USA Compression to use ABL revolver borrowings for CDM acquisition

By Sarah Lizee

Olympia, Wash., March 5 – USA Compression Partners, LP plans to use borrowings under its asset-based revolving credit facility to help fund its acquisition of all the outstanding membership interests in in CDM Resource Management LLC and CDM Environmental & Technical Services LLC from Energy Transfer Partners, LP.

The company will also use proceeds from a private placement of preferred units and a $725 million private placement of senior notes due 2026 to fund the purchase, according to a press release.

The purchase price will be about $1.7 billion, consisting of units representing limited partner interests in USA Compression and an amount in cash equal to $1,225,000,000, subject to some adjustments.

USA Compression is an Austin, Texas-based provider of natural gas compression services.

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