Archrock gets $750 million asset-based revolving credit facility

By Mary-Katherine Stinson

Lexington, Ky., May 18 – Archrock, Inc., Archrock Partners Operating LLC and Archrock Services LP and certain subsidiaries entered into an amended and restated credit agreement with JPMorgan Chase Bank, NA, providing for an asset-based revolving credit facility in a total principal amount of $750 million, according to an 8-K filing with the Securities and Exchange Commission.

The borrowers may request letters of credit up to $50 million and borrow swingline loans up to $75 million.

Total revolving commitments may be increased by a total additional amount of up to $750 million.

Borrowings bear interest at SOFR plus 10 basis points CSA plus an applicable margin from 200 basis points to 275 bps, determined based on a total leverage ratio pricing grid.

In addition, there are commitment fees based on the daily unused amount of the facility based on an applicable percentage ranging from 25 bps to 37.5 bps.

Amounts may be repaid and reborrowed, subject to borrowing base availability.

The credit facility will mature on May 16, 2028, subject to a springing maturity if any part of the company’s existing senior notes due April 2027 are outstanding on Dec. 2, 2026 or the company’s existing senior notes due April 2028 are outstanding on Dec. 3, 2027. If so, then the facility will mature on either of those dates.

The company must maintain on a consolidated basis as of the last day of each period of four consecutive fiscal quarters a total leverage ratio not greater than 5.5x through the third fiscal quarter of 2023 and 5.25x after, except after a specified acquisition in which it may remain no greater than 5.5x for the following two fiscal quarters, an interest coverage ratio of not less than 2.5x and a senior secured leverage ratio of not greater than 3x.

Wells Fargo Bank, NA is the syndication agent.

Bank of America, NA, Regions Bank, Royal Bank of Canada and the Bank of Nova Scotia, Houston branch are documentation agents, joint bookrunners and joint lead arrangers.

JPMorgan Chase Bank, NA, Wells Fargo Securities, LLC, NYCB Specialty Finance Co., LLC also join as joint bookrunners and joint lead arrangers.

Proceeds may be used to pay fees and expenses in connection with the amended and restated credit agreement, to finance working capital needs, for general company purposes and for any other non-prohibited purpose.

Archrock is a Houston-based energy infrastructure company.

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