Summit Midstream refinances notes due 2025, amends ABL facility

Chicago, Nov. 16 – Summit Midstream Partners, LP announced a refinancing of its senior notes due 2025 and a related amendment to its asset-based lending credit facility as part of a previously announced strategic alternatives review, according to a press release.

The company is exchanging $180 million of existing notes due 2025 and $29.5 million in cash for $209.5 million of new notes. The cash raised will be used to redeem or repurchase existing 2025 notes that are not part of the exchange.

The new 12% notes due Oct. 15, 2026 share a maturity date with the partnership’s existing 8˝% second-lien notes.

There will be $49.9 million of the notes due 2025 outstanding after the consummation of the transactions.

To address springing maturities associated with the notes due 2025 and allow for the $49.9 million of notes to be repaid with free cash flow, the company amended its ABL facility.

The partnership will also amend its interest coverage ratio covenant to 1.75x through year-end 2024 and 1.9x thereafter.

The refinancing of the notes due 2025 eliminates near-term maturities and provides additional runway for the company to de-lever.

The company is still exploring strategic alternatives, including the sale of specific assets or the entire partnership and other strategic transactions.

RBC Capital Markets, LLC acted as the lead financial adviser, and Baker Botts LLP acted as counsel, to Summit in connection with the transactions.

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

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