Archrock Announces Upsizing and Pricing of $300 Million of Senior Notes

Rhea-AI Summary

Archrock, a leader in natural gas compression services, announced an upsized private offering of $300 million in 6.250% senior notes due 2028, increasing from an initial $250 million. The notes will be sold at an issue price of 104.875% and are intended to partially repay borrowings under Archrock Partners' revolving credit facility. The offering is expected to close on December 17, 2020, pending customary conditions. The New Notes will combine with previously issued notes under the same indenture, highlighting Archrock's continued financial strategy in the midstream natural gas sector.

Positive

• Successful upsizing of the private offering from $250 million to $300 million increases financial strength.
• The issuance of 6.250% senior notes due 2028 enhances funding for operational needs and debt management.

Negative

• None.

HOUSTON, Dec. 14, 2020 (GLOBE NEWSWIRE) -- Archrock, Inc. (NYSE: AROC) (“Archrock”) today announced the pricing of an upsized private offering by Archrock Partners, L.P. (“Archrock Partners”), a wholly-owned subsidiary of Archrock, of $300 million aggregate principal amount of 6.250% senior notes due 2028 (the “New Notes”) at an issue price of 104.875% of their face value. The size of the offering was increased by $50 million from the previously announced offering size of $250 million. The New Notes are being offered as additional notes under an indenture, dated December 20, 2019 (the “Indenture”), pursuant to which the Issuers previously issued $500 million aggregate principal amount of 6.250% senior notes due 2028 (the “Initial Notes”). The offering is expected to close on December 17, 2020, subject to the satisfaction of customary closing conditions. Archrock Partners Finance Corp., a wholly-owned subsidiary of Archrock Partners, will serve as co-issuer of the New Notes. The New Notes will have identical terms as the Initial Notes, other than the issue date, and the New Notes and the Initial Notes will be treated as a single class of securities under the Indenture. Archrock Partners intends to use the net proceeds of the sale of the New Notes to partially repay outstanding borrowings under its revolving credit facility and for general partnership purposes.

The New 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 New 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 pure-play focus on midstream natural gas compression. Archrock is the leading provider of natural gas compression services to customers in the oil and natural gas industry throughout the United States and a leading supplier of aftermarket services to customers that own compression equipment in the United States.

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, 2019, 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:

Megan Repine
Vice President, Investor Relations
(281) 836-8360
investor.relations@archrock.com

FAQ

What is the amount of Archrock's recent private offering of senior notes?

Archrock's recent private offering amounts to $300 million.

What is the due date for the newly issued senior notes by Archrock?

The newly issued senior notes by Archrock are due in 2028.

What percentage are the senior notes being offered at?

The senior notes are being offered at a rate of 6.250%.

When is the expected closing date for Archrock's senior notes offering?

The expected closing date for Archrock's senior notes offering is December 17, 2020.

What will Archrock use the proceeds from the senior notes for?

Archrock intends to use the proceeds to partially repay outstanding borrowings under its revolving credit facility.