By Wendy Van Sickle
Columbus, Ohio, Oct. 28 – Summit Midstream Partners, LP, Summit Midstream Holdings, LLC and Summit Midstream Finance Corp. entered into a purchase agreement to sell $85 million 8.5% senior secured second-lien notes due 2026 at a price of 99.26, according to an 8-K filing with the Securities and Exchange Commission.
The note agreement is in connection with the previously announced agreements to acquire natural gas gathering and processing systems, a crude oil gathering system, freshwater rights and a subsurface freshwater delivery system in the DJ Basin.
Summit Midstream Holdings announced on Oct. 17 that it would be acquiring Outrigger DJ Midstream LLC and the operating subsidiaries of Sterling Energy Investments LLC for $305 million in cash.
The acquisition is expected to be financed through a combination of borrowings under Summit’s credit facility and the new issuance of notes.
Based in Houston, Summit is an owner and operator of midstream energy infrastructure assets. The Outrigger DJ and Sterling DJ consolidated asset portfolio is located in Weld, Morgan, and Logan counties in Colorado and Cheyenne County in Nebraska.
| Issuer: | Summit Midstream Partners, LP
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| Issue: | Senior secured second-lien notes
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| Amount: | $85 million
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| Maturity: | 2026
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| Coupon: | 8.5%
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| Price: | 99.26
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| Pricing date: | Oct. 28
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| Settlement date: | Nov. 14
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| Distribution: | Private placement
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