EnLink Midstream Announces Pricing of $500 million of Senior Notes Due 2034

Rhea-AI Summary

EnLink Midstream, (NYSE: ENLC) has announced the pricing of $500 million aggregate principal amount of its 5.650% senior notes due 2034 at 99.618% of face value. The sale is expected to settle on August 15, 2024, subject to customary closing conditions. The notes will be fully guaranteed by EnLink Midstream Partners, LP (ENLK). ENLC plans to use the net proceeds for general purposes, including repaying borrowings under the revolving credit facility and accounts receivable securitization facility, partly used to purchase ENLK's Series B Cumulative Convertible Preferred Units on August 5, 2024. BofA Securities, Citigroup Global Markets, Mizuho Securities USA, and RBC Capital Markets are acting as joint book-running managers for the offering.

Positive

• Successful pricing of $500 million senior notes offering
• 5.650% interest rate for 10-year notes indicates strong market confidence
• Full guarantee by EnLink Midstream Partners, LP enhances creditworthiness
• Proceeds to be used for debt repayment, improving financial flexibility

Negative

• Increase in long-term debt obligation
• Potential impact on interest expenses due to new notes issuance

Financial Analyst

EnLink Midstream's $500 million senior notes offering is a strategic move to optimize its capital structure. The 5.650% interest rate for 10-year notes is competitive in the current market, indicating investor confidence in ENLC's long-term prospects. This debt issuance allows the company to refinance existing debt and potentially lower its overall interest expenses.

The use of proceeds to repay revolving credit and accounts receivable facilities suggests a shift towards longer-term, fixed-rate debt. This could provide more stability in ENLC's debt profile and protect against potential interest rate hikes. The recent purchase of ENLK's Series B Preferred Units also indicates a simplification of the corporate structure, which may improve governance and reduce costs.

Investors should monitor how this debt issuance affects ENLC's leverage ratios and interest coverage in upcoming financial reports. While the move appears positive for financial flexibility, it's important to ensure it doesn't overburden the balance sheet in the long run.

Legal Expert

The offering's compliance with SEC regulations, including the use of an effective shelf registration statement, demonstrates ENLC's adherence to regulatory requirements. This transparency and compliance are positive signals for investors concerned about legal risks.

The full and unconditional guarantee by EnLink Midstream Partners, LP adds a layer of security for noteholders, potentially lowering the risk profile of the debt. However, investors should review the exact terms of this guarantee in the prospectus.

The disclaimer regarding the non-offer status of the press release is a standard legal protection. It's noteworthy that ENLC is limiting the offering to jurisdictions where it's registered, showing prudent legal risk management. Investors should always consult the full prospectus for complete legal details and risk factors associated with the offering.

DALLAS, Aug. 12, 2024 /PRNewswire/ -- EnLink Midstream, LLC (NYSE: ENLC) (ENLC) today announced the pricing of $500.0 million aggregate principal amount of its 5.650% senior notes due 2034 at a price to the public of 99.618% of their face value. The sale of the senior notes is expected to settle on August 15, 2024, subject to the satisfaction of customary closing conditions. The senior notes will be fully and unconditionally guaranteed on a senior basis by EnLink Midstream Partners, LP (ENLK), a subsidiary of ENLC. ENLC intends to use the net proceeds from the offering for general limited liability company purposes, including to repay borrowings under the revolving credit facility and the accounts receivable securitization facility, a portion of which were incurred to purchase ENLK's outstanding Series B Cumulative Convertible Preferred Units on August 5, 2024.

BofA Securities, Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC, and RBC Capital Markets, LLC are acting as representatives and joint book-running managers for the offering. A copy of the prospectus supplement and accompanying base prospectus relating to the offering may be obtained by sending a request to:

BofA Securities, Inc. 201 North Tryon Street NC1-022-02-25 Charlotte, NC 28255 Toll-free Phone: 800-294-1322 dg.prospectus_requests@bofa.com Attention: Prospectus Department	Citigroup Global Markets Inc. c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, NY 11717 Toll-free Phone: 800-831-9146 prospectus@citi.com
Mizuho Securities USA LLC 1271 Avenue of the Americas New York, NY 10020 Toll-free Phone: 866-271-7403  Attention: Debt Capital Markets	RBC Capital Markets, LLC Brookfield Place 200 Vesey Street, 8th Floor New York, NY 10281 Toll-free Phone: 866-375-6829 rbcnyfixedincomeprospectus@rbccm.com Attention: Syndicate Operations

You may also obtain these documents free of charge when they are available by visiting the Securities and Exchange Commission's (SEC) website at www.sec.gov.

The senior notes and ENLK's guarantee are being offered and will be sold pursuant to an effective shelf registration statement that was previously filed with the SEC. 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 state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This offering may be made only by means of the preliminary prospectus supplement and accompanying base prospectus relating to such offering meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

About EnLink Midstream
Headquartered in Dallas, EnLink Midstream (NYSE: ENLC) provides integrated midstream infrastructure services for natural gas, crude oil, and NGLs, as well as CO2 transportation for carbon capture and sequestration (CCS). Our large-scale, cash-flow-generating asset platforms are in premier production basins and core demand centers, including the Permian Basin, Louisiana, Oklahoma, and North Texas. EnLink is focused on maintaining the financial flexibility and operational excellence that enables us to strategically grow and create sustainable value.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Although these statements reflect the current views, assumptions, and expectations of ENLC's management, the matters addressed herein involve certain assumptions, risks, and uncertainties that could cause actual activities, performance, outcomes, and results to differ materially from those indicated herein. Therefore, you should not rely on any of these forward-looking statements. All statements, other than statements of historical fact, included in this press release constitute forward-looking statements, including but not limited to statements identified by the words "forecast," "may," "believe," "will," "should," "plan," "predict," "anticipate," "intend," "estimate," "expect," "continue," and similar expressions. Such forward-looking statements include, but are not limited to, statements regarding the anticipated consummation of the offering, the intended use of offering proceeds, the anticipated terms of the securities described herein, other aspects of the offering, and other statements that are not historical facts. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control, including risks and uncertainties related to ENLC's business, market conditions, whether ENLC will consummate the offering, the anticipated use of proceeds, and other risk factors included in ENLC's reports filed with the SEC. An extensive list of factors that can affect ENLC's business are discussed in ENLC's filings with the SEC, including ENLC's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. ENLC assumes no obligation to update any forward-looking statements.

Investor Relations: Brian Brungardt, Senior Director of Investor Relations, 214-721-9353, brian.brungardt@enlink.com

Media Relations: Megan Wright, Director of Corporate Communications, 214-721-9694, megan.wright@enlink.com

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SOURCE EnLink Midstream, LLC

FAQ

What is the interest rate and maturity of EnLink Midstream's new senior notes (ENLC)?

EnLink Midstream (ENLC) has priced $500 million of 5.650% senior notes due 2034, with a 10-year maturity.

When is the expected settlement date for EnLink Midstream's (ENLC) new senior notes offering?

The settlement date for EnLink Midstream's (ENLC) new senior notes offering is expected to be August 15, 2024, subject to customary closing conditions.

How does EnLink Midstream (ENLC) plan to use the proceeds from the senior notes offering?

EnLink Midstream (ENLC) intends to use the net proceeds for general purposes, including repaying borrowings under the revolving credit facility and accounts receivable securitization facility, partly used to purchase ENLK's Series B Cumulative Convertible Preferred Units.

Who are the joint book-running managers for EnLink Midstream's (ENLC) senior notes offering?

The joint book-running managers for EnLink Midstream's (ENLC) senior notes offering are BofA Securities, Citigroup Global Markets, Mizuho Securities USA, and RBC Capital Markets.