THE WOODLANDS, Texas,
Nov. 9, 2017 /PRNewswire/
-- Summit Midstream Partners, LP (NYSE: SMLP) (the
"Partnership") announced today that it has priced an underwritten
public offering of 300,000 of its 9.50% Series A Fixed-to-Floating
Rate Cumulative Redeemable Perpetual Preferred Units representing
limited partner interests in the Partnership (the "Preferred
Units") at a price of $1,000 per
unit. Distributions on the Preferred Units will be payable
from and including the date of original issue to, but not
including, December 15, 2022, at a
rate equal to 9.50% per annum of the $1,000 liquidation preference. On and after
December 15, 2022, distributions on
the Preferred Units will accumulate for each distribution period at
a percentage of the liquidation preference equal to the three-month
LIBOR plus a spread of 7.43%. The offering is expected to close on
November 14, 2017, subject to
customary closing conditions.
The Partnership expects to receive net proceeds from the
offering of approximately $293
million (after deducting underwriting discounts and
estimated offering expenses), and intends to use all of the net
proceeds to repay outstanding borrowings under its revolving credit
facility.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit
Suisse Securities (USA) LLC,
Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are
acting as the joint book-running managers of this offering, and
Merrill Lynch, Pierce, Fenner & Smith Incorporated is acting as
representative of each of the underwriters. When available,
copies of the prospectus supplement and accompanying base
prospectus relating to the offering may be obtained free of charge
on the Securities and Exchange Commission's website at www.sec.gov
or from the underwriters of the offering as follows:
Merrill Lynch,
Pierce, Fenner & Smith Incorporated
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Credit Suisse
Securities (USA) LLC
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Attn: Prospectus
Department
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Attn: Credit
Suisse Prospectus Department
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NC1-004-03-43, 200
North College Street, 3rd floor
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One Madison
Avenue
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Charlotte NC
28255-0001
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New York, NY
10010
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Email:
dg.prospectus_requests@baml.com
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Telephone: (800)
221-1037
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Email:
newyork.prospectus@credit-suisse.com
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Morgan Stanley &
Co. LLC
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Wells Fargo
Securities, LLC
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Attention:
Prospectus Department
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Attn: WFS Customer
Service
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180 Varick Street,
2nd Floor
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608 2nd Ave S, Suite
1000
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New York, New York
10014
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Minneapolis, MN
55402
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Telephone: (800)
645-3751
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Email:
wfscustomerservice@wellsfargo.com
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The Preferred Units are being offered and will be sold pursuant
to an effective shelf registration statement on Form S-3 that was
previously filed with the Securities and Exchange Commission.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy the securities described herein,
nor shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction. The offering may
be made only by means of a prospectus and related prospectus
supplement meeting the requirements of Section 10 of the Securities
Act of 1933, as amended.
About Summit Midstream Partners, LP
SMLP is a
growth-oriented limited partnership focused on developing, owning
and operating midstream energy infrastructure assets that are
strategically located in the core producing areas of unconventional
resource basins, primarily shale formations, in the continental
United States. SMLP provides
natural gas, crude oil and produced water gathering services
pursuant to primarily long-term and fee-based gathering and
processing agreements with customers and counterparties in five
unconventional resource basins: (i) the Appalachian Basin, which
includes the Marcellus and Utica
shale formations in West Virginia
and Ohio; (ii) the Williston Basin, which includes the Bakken and
Three Forks shale formations in North
Dakota; (iii) the Fort
Worth Basin, which includes the Barnett Shale formation in
Texas; (iv) the Piceance Basin,
which includes the Mesaverde formation as well as the Mancos and Niobrara shale formations in Colorado and Utah; and (v) the Denver-Julesburg Basin,
which includes the Niobrara and
Codell shale formations in Colorado and Wyoming. SMLP is in the process of
developing new gathering and processing infrastructure in a sixth
basin, the Delaware Basin, in
New Mexico. SMLP also owns
substantially all of a 40% ownership interest in Ohio Gathering,
which is developing natural gas gathering and condensate
stabilization infrastructure in the Utica Shale in Ohio. SMLP is headquartered in The Woodlands, Texas, with regional corporate
offices in Denver, Colorado and
Atlanta, Georgia.
Forward-Looking Statements
This press release
includes certain statements concerning expectations for the future
that are forward-looking within the meaning of the federal
securities laws. Forward-looking statements contain known and
unknown risks and uncertainties (many of which are difficult to
predict and beyond management's control) that may cause SMLP's
actual results in future periods to differ materially from
anticipated or projected results. An extensive list of specific
material risks and uncertainties affecting SMLP is contained in its
2016 Annual Report on Form 10-K as updated and superseded by the
Current Report on Form 8-K filed with the Securities and Exchange
Commission on November 6, 2017, and
as amended and updated from time to time. Any forward-looking
statements in this press release are made as of the date of this
press release and SMLP undertakes no obligation to update or revise
any forward-looking statements to reflect new information or
events.
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SOURCE Summit Midstream Partners, LP