Kinetik Executes New Accounts Receivable Securitization Facility
April 03 2024 - 4:15PM
Business Wire
Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik” or the
“Company”) today announced that one of its subsidiaries has
entered into an agreement with PNC Bank, National Association for a
$150 million accounts receivable securitization facility (“A/R
Facility”) which matures April 2025 with an ongoing renewal
mechanism. The initial borrowing base of $150 million will vary
with the value of the Company's accounts receivable balance.
Borrowings under the A/R Facility bear interest at the one-month
term SOFR rate plus 90 basis points.
Kinetik intends to use the net proceeds from the A/R Facility to
repay a portion of the outstanding borrowings under its existing
Term Loan Credit Facility (“Term Loan”), lowering the
remaining balance to $1.0 billion. As a result, the maturity of the
Term Loan will extend to December 8, 2026.
About Kinetik Holdings Inc.
Kinetik is a fully integrated, pure-play, Permian-to-Gulf Coast
midstream C-corporation operating in the Delaware Basin. Kinetik is
headquartered in Midland, Texas and has a significant presence in
Houston, Texas. Kinetik provides comprehensive gathering,
transportation, compression, processing and treating services for
companies that produce natural gas, natural gas liquids, crude oil
and water.
Forward-looking statements
This news release includes certain statements that may
constitute “forward-looking statements” for purposes of the federal
securities laws. Forward-looking statements include, but are not
limited to, statements that refer to projections, forecasts or
other characterizations of future events or circumstances,
including any underlying assumptions. The words “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intends,”
“may,” “might,” “plan,” “seeks,” “possible,” “potential,”
“predict,” “project,” “prospects,” “guidance,” “outlook,” “should,”
“would,” “will,” and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking. These statements
include, but are not limited to, statements regarding the Offering.
While forward-looking statements are based on assumptions and
analyses made by us that we believe to be reasonable under the
circumstances, whether actual results and developments will meet
our expectations and predictions depend on a number of risks and
uncertainties which could cause our actual results, performance,
and financial condition to differ materially from our expectations.
See Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K
for the year ended December 31, 2023. Any forward-looking statement
made by us in this news release speaks only as of the date on which
it is made. Factors or events that could cause our actual results
to differ may emerge from time to time, and it is not possible for
us to predict all of them. We undertake no obligation to publicly
update any forward-looking statement, whether as a result of new
information, future development, or otherwise, except as may be
required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240403506560/en/
Kinetik Investors: (713) 487-4832 Maddie Wagner (713) 574-4743
Alex Durkee
Kinetik (NYSE:KNTK)
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