Summit Midstream unit gets $175 million two-tranche credit facility

By Wendy Van Sickle

Columbus, Ohio, March 12 – Summit Midstream Partners, LP’s subsidiary Summit Permian Transmission, LLC entered into a credit agreement with ING Capital LLC, Mizuho Bank, Ltd. and MUFG Union Bank, NA that proves for a $160 million term loan and a $15 million working capital facility, according to an 8-K filing with the Securities and Exchange Commission.

The credit facilities can be used to finance Permian Transmission’s capital calls associated with its investment in Double E Pipeline, LLC, debt service and other general corporate purposes.

The facilities mature on the earlier of the sixth anniversary of the term conversion date and seven years after the initial funding date, which occurred on the closing date, March 8.

The term conversion date will occur upon satisfaction of customary conditions, including bringing the Double E project into service under its transportation agreements.

Upon term conversion, the credit facilities will amortize based on a 10-year sculpted amortization schedule.

Permian Transmission will be required to maintain a six-month debt service reserve, which can be supported by letters of credit issued under the working capital facility.

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

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