Archrock Announces Private Offering of $500 Million of Senior Notes
Archrock (NYSE: AROC) announced that its subsidiary, Archrock Partners, plans to offer $500 million in senior notes due 2032 to eligible purchasers. The net proceeds will primarily fund the cash portion of Archrock's acquisition of Total Operations and Production Services, Any remaining funds will be used for general corporate purposes, potentially including debt repayment. The notes will be offered only to qualified institutional buyers and non-U.S. persons, in compliance with Securities Act regulations. This offering is subject to market conditions and is not contingent on the acquisition's completion. The notes are not registered under the Securities Act and have restrictions on their sale and offer in the United States.
Archrock (NYSE: AROC) ha annunciato che la sua controllata, Archrock Partners, prevede di offrire 500 milioni di dollari in note senior scadenti nel 2032 a compratori idonei. I proventi netti saranno principalmente utilizzati per finanziare la parte in contante dell'acquisizione di Total Operations and Production Services da parte di Archrock. Eventuali fondi rimanenti saranno utilizzati per scopi aziendali generali, inclusi, possibilmente, il rimborso del debito. Le note saranno offerte solo a compratori istituzionali qualificati e a soggetti non statunitensi, in conformità con le normative del Securities Act. Questa offerta è soggetta alle condizioni di mercato e non dipende dal completamento dell'acquisizione. Le note non sono registrate ai sensi del Securities Act e hanno restrizioni sulla loro vendita e offerta negli Stati Uniti.
Archrock (NYSE: AROC) anunció que su subsidiaria, Archrock Partners, planea ofrecer 500 millones de dólares en notas senior con vencimiento en 2032 a compradores elegibles. Los ingresos netos se utilizarán principalmente para financiar la parte en efectivo de la adquisición de Total Operations and Production Services por parte de Archrock. Cualquier fondo restante se utilizará para fines corporativos generales, incluyendo, potencialmente, el pago de deudas. Las notas solo se ofrecerán a compradores institucionales calificados y a personas no estadounidenses, en cumplimiento con las regulaciones del Securities Act. Esta oferta está sujeta a las condiciones del mercado y no depende de la finalización de la adquisición. Las notas no están registradas bajo el Securities Act y tienen restricciones sobre su venta y oferta en los Estados Unidos.
Archrock (NYSE: AROC)는 자회사인 Archrock Partners가 2032년에 만기되는 5억 달러 규모의 선순위 채권을 적격 구매자에게 제공할 계획이라고 발표했습니다. 순수익은 주로 Archrock의 Total Operations and Production Services 인수의 현금 부분을 자금 조달하는 데 사용될 것입니다. 남은 자금은 일반 기업 용도로 사용할 수 있으며, 잠재적으로는 부채 상환도 포함됩니다. 이 채권은 Securities Act 규정에 따라 자격을 갖춘 기관 투자자와 비 미국인에게만 제공됩니다. 이 제공은 시장 조건에 따라 달라지며 인수의 완료에 의존하지 않습니다. 이 채권은 Securities Act에 따라 등록되지 않았으며, 미국 내에서의 판매 및 제공에 제한이 있습니다.
Archrock (NYSE: AROC) a annoncé que sa filiale, Archrock Partners, prévoit d'offrir 500 millions de dollars en obligations senior à échéance en 2032 à des acheteurs éligibles. Les produits nets seront principalement utilisés pour financer la partie en espèces de l'acquisition par Archrock des Total Operations and Production Services. Les fonds restants seront utilisés pour des fins d'entreprise générales, y compris potentiellement le remboursement de la dette. Les obligations ne seront offertes qu'à des acheteurs institutionnels qualifiés et à des personnes non américaines, conformément aux réglementations de la Securities Act. Cette offre est soumise aux conditions du marché et n'est pas conditionnée à l'achèvement de l'acquisition. Les obligations ne sont pas enregistrées en vertu de la Securities Act et sont soumises à des restrictions concernant leur vente et leur offre aux États-Unis.
Archrock (NYSE: AROC) hat bekannt gegeben, dass die Tochtergesellschaft Archrock Partners plant, 500 Millionen Dollar an vorrangigen Anleihen mit Fälligkeit 2032 an berechtigte Käufer anzubieten. Die Nettomittel sollen hauptsächlich zur Finanzierung des Barkaufpreises für die Übernahme von Total Operations and Production Services durch Archrock verwendet werden. Etwaige verbleibende Mittel werden für allgemeine Unternehmenszwecke verwendet, möglicherweise einschließlich der Rückzahlung von Schulden. Die Anleihen werden nur an qualifizierte institutionelle Käufer und Nicht-US-Personen gemäß den Vorschriften des Securities Act angeboten. Dieses Angebot unterliegt den Marktbedingungen und ist nicht von der Vollziehung der Übernahme abhängig. Die Anleihen sind nicht unter dem Securities Act registriert und unterliegen Verkaufs- und Angebotsbeschränkungen in den Vereinigten Staaten.
- Raising $500 million through senior notes offering
- Funding acquisition of Total Operations and Production Services,
- Potential reduction of outstanding borrowings under revolving credit facility
- Increase in long-term debt obligations
- Potential dilution of shareholder value
- Offering to qualified institutional buyers and non-U.S. persons
Insights
Archrock's $500 million senior notes offering is a significant move to finance its acquisition of Total Operations and Production Services, This debt issuance strategy allows Archrock to leverage its balance sheet for growth without immediate equity dilution. The 2032 maturity provides long-term financing stability, but investors should monitor how this additional debt impacts Archrock's leverage ratios and interest coverage.
The use of proceeds for the acquisition and potential debt repayment suggests a strategic focus on expanding operations while managing overall indebtedness. The offering's success will depend on market conditions and investor appetite for high-yield energy sector debt. Investors should watch for the final pricing and demand for these notes as indicators of market confidence in Archrock's financial health and growth strategy.
The private offering structure under Rule 144A and Regulation S exemptions is a common approach for expedited capital raising without the lengthy SEC registration process. This method restricts initial buyers to qualified institutional investors, potentially limiting liquidity in the secondary market. The explicit disclaimers about registration and offer limitations are important legal safeguards against potential securities law violations.
Investors should note that while this offering provides financial flexibility, it also comes with increased scrutiny on the company's disclosure practices and financial reporting. The non-conditional nature of the offering and acquisition is a prudent legal structure, protecting both transactions from interdependency risks. This approach mitigates potential legal complications if either transaction fails to close as planned.
Archrock's move to issue
The 2032 maturity of the notes indicates a long-term commitment to growth, aligning with expectations of sustained demand in the natural gas infrastructure sector. However, the success of this strategy hinges on stable or growing natural gas production and transportation needs. Investors should monitor industry trends, particularly the balance between renewable energy adoption and continued reliance on natural gas infrastructure, to assess the long-term viability of Archrock's expanded operations.
HOUSTON, Aug. 12, 2024 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock”) today announced that Archrock Partners, L.P. (“Archrock Partners”), a wholly-owned subsidiary of Archrock, intends, subject to market and other conditions, to offer and sell to eligible purchasers
Archrock intends to use the net proceeds from the offering of the Notes to fund a portion of the cash consideration for the previously announced acquisition of
The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the rules promulgated thereunder and applicable state securities laws. The Notes will be offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About Archrock
Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment. For more information on how Archrock embodies its purpose, WE POWER A CLEANER AMERICA, please visit www.archrock.com.
About Archrock Partners
Archrock Partners is a leading provider of natural gas compression services to customers in the oil and natural gas industry throughout the United States. Archrock owns all of the limited and general partnership interests in Archrock Partners.
Forward-Looking Statements
All statements in this release (and oral statements made regarding the subjects of this release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside Archrock or Archrock Partners’ control. Forward-looking information includes, but is not limited to: statements regarding Archrock Partners’ proposed offering, the completion of such offering, the intended use of net proceeds from the proposed offering, and the impact of market conditions on such offering.
While Archrock and Archrock Partners believe that the assumptions concerning future events are reasonable, they caution that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. Among the factors that could cause results to differ materially from those indicated by such forward-looking statements are: local, regional and national economic conditions and the impact they may have on Archrock Partners’ and its customers; conditions in the oil and gas industry, including the level of production of, demand for or price of oil or natural gas; changes in safety, health, environmental and other regulations; the financial condition of Archrock Partners’ customers; the failure of any customer to perform its contractual obligations; and the performance of Archrock.
These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Archrock’s Annual Report on Form 10-K for the year ended December 31, 2023, as amended by Amendment No. 1 on Form 10-K/A, Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, and those reports set forth from time to time in Archrock’s filings with the Securities and Exchange Commission, which are available at www.archrock.com. Except as required by law, Archrock and Archrock Partners expressly disclaim any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE: Archrock, Inc.
For information, contact:
| Archrock, Inc. |
| INVESTORS Megan Repine VP of Investor Relations 281-836-8360 investor.relations@archrock.com |
| MEDIA Andrew Siegel / Jed Repko Joele Frank 212-355-4449 |
FAQ
What is the purpose of Archrock's $500 million senior notes offering?
When are Archrock's (AROC) newly offered senior notes due?
Who is eligible to purchase Archrock's (AROC) new senior notes?
Is Archrock's (AROC) senior notes offering contingent on the completion of its acquisition?
