EnLink Midstream Announces Public Offering of Senior Notes

Rhea-AI Summary

EnLink Midstream, (NYSE: ENLC) has announced its intention to offer senior notes in an underwritten public offering, subject to market conditions. The notes will be fully guaranteed by EnLink Midstream Partners, LP (ENLK), a subsidiary of ENLC. The net proceeds will be used for general purposes, including repaying borrowings under the revolving credit facility and the accounts receivable securitization facility. Part of these borrowings were used to purchase ENLK's outstanding 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 representatives and joint book-running managers for the offering. The senior notes and ENLK's guarantee will be offered and sold under an effective shelf registration statement previously filed with the SEC.

Positive

• Potential to strengthen ENLC's financial position by repaying existing borrowings
• Utilization of an effective shelf registration statement, streamlining the offering process

Negative

• Potential increase in long-term debt obligations
• Possible dilution of existing shareholders' equity

DALLAS, Aug. 12, 2024 /PRNewswire/ -- EnLink Midstream, LLC (NYSE: ENLC) (ENLC) today announced its intention, subject to market conditions, to offer senior notes in an underwritten public offering. 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 legalnotices@mizuhogroup.com 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 the 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 purpose of EnLink Midstream's (ENLC) senior notes offering?

ENLC intends to use the net proceeds for general purposes, including repaying borrowings under the revolving credit facility and the accounts receivable securitization facility, part of which were used to purchase ENLK's Series B Cumulative Convertible Preferred Units on August 5, 2024.

Who are the underwriters for EnLink Midstream's (ENLC) senior notes offering?

The representatives and joint book-running managers for the offering are BofA Securities, Citigroup Global Markets, Mizuho Securities USA, and RBC Capital Markets.

How will EnLink Midstream Partners, LP (ENLK) be involved in ENLC's senior notes offering?

ENLK, a subsidiary of ENLC, will fully and unconditionally guarantee the senior notes on a senior basis.

When did EnLink Midstream (ENLC) purchase ENLK's Series B Cumulative Convertible Preferred Units?

ENLC purchased ENLK's outstanding Series B Cumulative Convertible Preferred Units on August 5, 2024.