Summit Midstream announces amendment to revolving credit facility

By Cady Vishniac

Detroit, Dec. 18 – Summit Midstream Partners, LP’s wholly owned subsidiary, Summit Midstream Holdings, LLC, has entered into an amendment to its revolving credit facility, according to a company press release.

The revolver, which is supported by a syndicate of 20 banks, was amended to provide additional liquidity and flexibility to continue to execute management of liability that includes debt maturing in 2022.

The amendment contains the following changes:

• Reduced commitments under the revolver to $1.1 billion from $1.25 billion;

• Elimination of the $250 million accordion;

• Inclusion of a basket for issuing up to $400 million of junior-lien debt;

• Revised restrictions on the company’s use of operating cash flow to repurchase junior debt and equity securities;

• Increase in the total leverage covenant to 5.75x from 5.5x going forward;

• Replacement of the 3.75x senior secured leverage covenant with a new 3.5x first-lien leverage covenant;

• Addition of a new pricing tier of Libor plus 325 basis points if the total leverage ratio is greater than 5x;

• Restriction of the company’s ability to resume distributions on preferred and common units, subject to achieving certain financial and liquidity thresholds

Summit, based in Houston, is an owner and operator of midstream energy infrastructure assets.

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