HOUSTON, Dec. 18, 2020 /PRNewswire/ -- Summit
Midstream Partners, LP (NYSE: SMLP) (the "Partnership") announced
today that its wholly owned subsidiary, Summit Midstream Holdings,
LLC, has executed an amendment of its revolving credit facility
(the "Revolver"). The Revolver, which is supported by a
syndicate of 20 banking institutions, was amended, with
overwhelming support, to provide the Partnership with additional
liquidity and financial flexibility to continue to execute on its
liability management initiatives, including opening a pathway for
the Partnership to address its debt that matures in 2022. The
following is a summary of the key terms of the amendment:
- Reduced the Revolver commitments from $1.25 billion to $1.1
billion and eliminated the $250
million accordion feature
- Included a basket for the issuance of up to $400 million of junior lien indebtedness
- Revised restrictions on the Partnership's ability to use
operating cash flow to repurchase junior debt and equity
securities
- Increased the total leverage covenant from 5.50x to 5.75x at
all times going forward
- Replaced the 3.75x senior secured leverage covenant with a new
3.50x first lien leverage covenant
- Added a new pricing tier of L + 325 bps if the total leverage
ratio is greater than 5.00x
- Restricted the Partnership's ability to resume distributions on
preferred and common units, subject to achieving certain financial
and liquidity thresholds
Heath Deneke, President, Chief
Executive Officer and Chairman, commented, "We sincerely appreciate
the continued support of our lenders and the confidence they have
in SMLP. This amendment provides the Partnership with
additional tools and financial flexibility to continue to enhance
the balance sheet and address the senior unsecured notes maturing
in August 2022. While we currently do not expect to have any
issues with our existing covenants, we made the proactive decision
to increase our total leverage ratio covenant to provide for
additional liquidity as we continue to manage through an uncertain
time in our industry. This amendment represents a critical
milestone in our liability management strategy, though we recognize
that we still have work to do and we are committed to doing all we
can to drive unitholder value. We look forward to providing
additional updates on our liability management initiatives during
our year-end earnings call in February."
About Summit Midstream Partners, LP
SMLP is a
value-driven limited partnership focused on developing, owning and
operating midstream energy infrastructure assets that are
strategically located in 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 six
unconventional resource basins: (i) the Appalachian Basin, which
includes the Utica and Marcellus
shale formations in Ohio and
West Virginia; (ii) the
Williston Basin, which includes
the Bakken and Three Forks shale formations in North Dakota; (iii) the Denver-Julesburg
Basin, which includes the Niobrara
and Codell shale formations in Colorado and Wyoming; (iv) the Permian Basin, which
includes the Bone Spring and Wolfcamp formations in New Mexico; (v) the Fort Worth Basin, which includes the Barnett
Shale formation in Texas; and (vi)
the Piceance Basin, which includes the Mesaverde formation as well
as the Mancos and Niobrara shale formations in Colorado.
SMLP has an equity investment in Double E Pipeline, LLC, which is
developing natural gas transmission infrastructure that will
provide transportation service from multiple receipt points in the
Delaware Basin to various delivery
points in and around the Waha Hub in Texas. SMLP also has an
equity investment in Ohio Gathering, which operates extensive
natural gas gathering and condensate stabilization infrastructure
in the Utica Shale in Ohio. SMLP is headquartered in
Houston, Texas.
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 include, without limitation,
any statement that may project, indicate or imply future results,
events, performance or achievements and may contain the words
"expect," "intend," "plan," "anticipate," "estimate," "believe,"
"will be," "will continue," "will likely result," and similar
expressions, or future conditional verbs such as "may," "will,"
"should," "would," and "could." Forward-looking statements
also 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 2019 Annual
Report on Form 10-K filed with the Securities and Exchange
Commission (the "SEC") on March 9, 2020, Quarterly Report
on Form 10-Q for the three months ended March 31, 2020 filed with the SEC on May 8, 2020, Quarterly Report on Form 10-Q for
the three months ended June 30, 2020
filed with the SEC on August 10, 2020
and Quarterly Report on Form 10-Q for the three months ended
September 30, 2020 filed with the SEC
on November 6, 2020, each 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.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/summit-midstream-partners-lp-announces-revolving-credit-facility-amendment-301196052.html
SOURCE Summit Midstream Partners, LP