Hess Midstream Operations LP Announces Private Offering of Senior Notes Due 2030
Hess Midstream Operations LP, a subsidiary of Hess Midstream LP (NYSE: HESM), plans to offer $750 million in senior unsecured notes due 2030. The net proceeds will finance the repurchase of approximately 31 million Class B units from Hess Corporation and Global Infrastructure Partners. These Notes will be sold to qualified institutional buyers under Rule 144A and to non-U.S. Persons per Regulation S. The offering will not be registered under the Securities Act, and is not an offer to sell or a solicitation in any jurisdiction where such an offer would be unlawful.
- Intended use of funds for buying back 31 million Class B units, potentially increasing share value.
- Issuance of senior unsecured notes may lead to shareholder dilution.
Hess Midstream Operations LP (the “Issuer”), a consolidated subsidiary of Hess Midstream LP (NYSE: HESM) (“HESM” and, together with the Issuer, “Hess Midstream”), today announced that it intends to offer
Hess Midstream intends to use the net proceeds from the offering to finance the previously announced repurchase by the Issuer of approximately 31 million Class B units from affiliates of Hess Corporation and Global Infrastructure Partners.
The Notes are being sold only to “qualified institutional buyers” in the United States pursuant to Rule 144A and outside the United States to non-U.S. Persons in compliance with Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Notes have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.
This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.
About Hess Midstream
Hess Midstream is a fee-based, growth-oriented, midstream company that owns, operates, develops and acquires a diverse set of midstream assets to provide services to Hess Corporation and third-party customers. Hess Midstream owns oil, gas and produced water handling assets that are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. More information is available at www.hessmidstream.com.
Forward Looking Statements
This press release includes forward-looking statements within the meaning of U.S. securities laws. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. You should keep in mind the risk factors and other cautionary statements in the filings made by HESM with the U.S. Securities and Exchange Commission, which are available to the public. HESM undertakes no obligation to, and does not intend to, update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
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FAQ
What is the purpose of Hess Midstream's $750 million notes offering?
Who can purchase the senior unsecured notes being offered by Hess Midstream?
What are the maturity terms for Hess Midstream's senior unsecured notes?
Will the senior unsecured notes be registered with the SEC?
