HOUSTON, July 17,
2024 /PRNewswire/ -- Summit Midstream Partners, LP
(NYSE: SMLP) ("Summit," "SMLP" or the "Partnership") announced
today that Summit Midstream Holdings, LLC (the "Issuer"), which is
a subsidiary of the Partnership, has commenced an offering (the
"Offering") of $500 million in
aggregate principal amount of new Senior Secured Second Lien Notes
due 2029 (the "New Notes"). The Partnership intends to use the net
proceeds from the Offering, together with cash on hand and
borrowings under the Partnership's asset-based lending credit
facility (as amended and restated, the "ABL Facility") (i) to
repurchase or redeem all of the Partnership's 8.500% Senior Secured
Second Lien Notes due 2026 (the "2026 Secured Notes") and 5.75%
Senior Notes due 2025 (the "2025 Notes"), (ii) to pay accrued and
unpaid interest on the 2026 Secured Notes and the 2025 Notes and
(iii) for general partnership purposes, including to pay fees and
expenses associated with the Offering and the repurchase of the
2026 Secured Notes for cash, subject to certain conditions.
It is expected that the New Notes will be guaranteed on a senior
second-priority basis by the Partnership and certain of the
Partnership's existing and future subsidiaries and will initially
be secured on a second-priority basis by substantially the same
collateral that is pledged for the benefit of the Partnership's
lenders under the ABL Facility.
The New Notes and the related guarantees are being offered in
the United States only to persons
reasonably believed to be qualified institutional buyers pursuant
to Rule 144A under the Securities Act of 1933, as amended (the
"Securities Act"), and to persons outside the United States only in compliance with
Regulation S under the Securities Act. The New Notes and the
related guarantees have not been registered under the Securities
Act and may not be offered or sold in the
United States absent registration or an applicable exemption
from the registration requirements.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any security, nor shall there be
any sale of the New Notes and the related guarantees or any other
security of the Partnership, in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
jurisdiction. This press release does not constitute a notice of
redemption under the optional redemption provisions of the
indenture governing the 2026 Secured Notes or the indenture
governing the 2025 Notes.
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 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,
processing and transportation services pursuant to primarily
long-term, fee-based agreements with customers and counterparties
in four unconventional resource basins: (i) the Williston Basin, which includes the Bakken and
Three Forks shale formations in North
Dakota; (ii) the Denver-Julesburg Basin, which includes the
Niobrara and Codell shale
formations in Colorado and
Wyoming; (iii) the Fort Worth Basin, which includes the Barnett
Shale formation in Texas; and (iv)
the Piceance Basin, which includes the Mesaverde formation as well
as the Mancos and Niobrara shale formations in Colorado. SMLP has an equity method investment
in Double E Pipeline, LLC, which provides interstate natural gas
transportation service from multiple receipt points in the
Delaware Basin to various delivery
points in and around the Waha Hub in Texas. 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," including, but not limited to, statements regarding the
Issuer's plans to issue the New Notes and the intended use of the
net proceeds therefrom. In addition, any statement concerning
future financial performance (including future revenues, earnings
or growth rates), ongoing business strategies and possible actions
taken by SMLP or its subsidiaries are also forward-looking
statements. 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
Annual Report on Form 10-K for the year ended December 31, 2023, which the Partnership filed
with the Securities and Exchange Commission (the "SEC") on
March 15, 2024, as amended and
updated from time to time, including by the Partnership's Quarterly
Report on Form 10-Q for the quarterly period ended March 31, 2024, which the Partnership filed with
the SEC on May 6, 2024, and by
Exhibit 99.1 to the Partnership's Current Report on Form 8-K filed
with the SEC on June 3, 2024. 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