Hess Midstream extends $1 billion revolver, $400 million term loan

Chicago, July 15 – Hess Midstream Partners LP and subsidiary Hess Midstream Operations LP amended and restated the existing credit agreement with JPMorgan Chase Bank, NA as administrative agent on Thursday, according to an 8-K filed with the Securities and Exchange Commission.

The $1 billion of commitments for the senior secured revolving credit facility were unchanged, as were the $400 million of commitments for the senior secured term loan.

The restated facility did extend the maturity date to July 14, 2027, from Dec. 16, 2024.

The accordion feature was increased to up to an additional $750 million.

And, the benchmark was changed to SOFR from Libor.

The leveraged-based five-tier grid starts at SOFR plus 127.5 and goes up to SOFR plus 195 bps for revolving loans. The commitment fee can go as low as 27.5 bps or as high as 50 bps.

For tranche A term loans, the grid is 155 bps to 245 bps.

In the case of investment-grade ratings, the grid would be 90 bps to 150 bps for the revolver and 100 bps to 175 bps for the term loan. The facility fee would be between 10 bps and 25 bps.

In terms of covenants, the partnership must maintain a ratio of total debt to EBITDA for the prior four fiscal quarters of not greater than 5x as of the last day of each fiscal quarter (5.5x during the specified period following certain acquisitions) and, prior to the partnership obtaining an investment-grade credit rating, a ratio of secured debt to EBITDA for the prior four fiscal quarters of not greater than 4x as of the last day of each fiscal quarter.

JPMorgan Chase Bank, NA, MUFG Bank, Ltd., Citibank, Sumitomo Mitsui Banking Corp., Wells Fargo Securities, LLC, Goldman Sachs Lending Partners LLC and Morgan Stanley Senior Funding, Inc. are listed as joint lead arrangers and joint bookrunners.

MUFG Bank, Ltd., Citibank, Sumitomo Mitsui , Wells Fargo, Goldman Sachs and Morgan Stanley are the syndication agents.

DNB Capital LLC, Mizuho Bank, Ltd., Bank of Nova Scotia, Toronto-Dominion Bank and Truist Bank are the documentation agents.

The term loan will be used to refinance an existing credit agreement and any remaining proceeds will be used for general corporate purposes.

The revolving loans can be used to meet working capital and general corporate requirements, make distributions and other restricted payments by the borrower and the restricted subsidiaries and for other general corporate purposes.

The borrower is a Houston-based oil and gas midstream services provider.

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