Hess Midstream Operations LP Announces Private Offering of Senior Notes Due 2028
Hess Midstream Operations LP, a consolidated subsidiary of Hess Midstream LP (NYSE: HESM), announced plans to offer $800 million in senior unsecured notes due 2028 through a private offering. The company intends to use the net proceeds, combined with borrowings from its revolving credit facility, to redeem its outstanding 5.625% senior notes due 2026.
The Notes will be offered exclusively to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S. The securities will not be registered under the Securities Act or state securities laws, limiting their sale and transfer in the United States without registration or applicable exemption.
Hess Midstream Operations LP, una sussidiaria consolidata di Hess Midstream LP (NYSE: HESM), ha annunciato l'intenzione di offrire 800 milioni di dollari in obbligazioni senior non garantite con scadenza nel 2028 tramite un'offerta privata. L'azienda prevede di utilizzare il ricavato netto, insieme ai prestiti dalla propria linea di credito rotativa, per risolvere le proprie obbligazioni senior al 5.625% in scadenza nel 2026.
Le obbligazioni saranno offerte esclusivamente a investitori istituzionali qualificati ai sensi della Regola 144A e a persone non statunitensi ai sensi della Regolamentazione S. I titoli non saranno registrati ai sensi del Securities Act o delle leggi statali sui titoli, limitando così la loro vendita e trasferimento negli Stati Uniti senza registrazione o esenzione applicabile.
Hess Midstream Operations LP, una subsidiaria consolidada de Hess Midstream LP (NYSE: HESM), anunció planes para ofrecer 800 millones de dólares en notas senior no garantizadas con vencimiento en 2028 a través de una oferta privada. La compañía tiene la intención de usar los ingresos netos, combinados con préstamos de su línea de crédito renovable, para redimir sus notas senior al 5.625% con vencimiento en 2026.
Las notas se ofrecerán exclusivamente a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses bajo la Regulación S. Los valores no se registrarán bajo la Ley de Valores ni las leyes estatales de valores, lo que limita su venta y transferencia en los Estados Unidos sin registro o exención aplicable.
Hess Midstream Operations LP는 Hess Midstream LP (NYSE: HESM)의 통합 자회사가 2028년 만기 예정인 8억 달러의 선순위 무담보 노트를 사모로 제공할 계획을 발표했습니다. 이 회사는 순수익금을 회전 신용 시설에서 차입한 자금과 결합하여 2026년에 만기가 도래하는 5.625% 선순위 노트를 상환하는 데 사용할 예정입니다.
노트는 144A 규정에 따른 자격을 갖춘 기관 투자자와 S규정에 따른 비미국인에게만 제공됩니다. 이 증권은 증권법 또는 주 증권법에 따라 등록되지 않으므로, 등록 또는 적용 가능한 면제 없이 미국 내에서의 매각 및 이전이 제한됩니다.
Hess Midstream Operations LP, une filiale consolidée de Hess Midstream LP (NYSE: HESM), a annoncé son intention d'offrir 800 millions de dollars en obligations senior non garanties arrivant à échéance en 2028 dans le cadre d'une offre privée. La société prévoit d'utiliser les produits nets, combinés aux emprunts de sa facilité de crédit rotative, pour racheter ses obligations senior de 5,625% arrivant à échéance en 2026.
Les obligations seront offertes exclusivement à des acheteurs institutionnels qualifiés conformément à la règle 144A et à des personnes non américaines conformément à la réglementation S. Les titres ne seront pas enregistrés en vertu du Securities Act ou des lois sur les valeurs mobilières des États, ce qui limite leur vente et leur transfert aux États-Unis sans enregistrement ou exemption applicable.
Hess Midstream Operations LP, eine konsolidierte Tochtergesellschaft von Hess Midstream LP (NYSE: HESM), gab Pläne bekannt, 800 Millionen Dollar in nicht besicherten vorrangigen Anleihen mit Fälligkeit 2028 über eine private Platzierung anzubieten. Das Unternehmen beabsichtigt, die Nettoerlöse zusammen mit den Einnahmen aus seiner revolvierenden Kreditfazilität zu verwenden, um seine ausstehenden 5,625% vorrangigen Anleihen mit Fälligkeit 2026 einzulösen.
Die Anleihen werden ausschließlich an qualifizierte institutionelle Käufer gemäß Regel 144A und an Nicht-US-Personen gemäß der Regulierung S angeboten. Die Wertpapiere werden nicht gemäß dem Securities Act oder den staatlichen Wertpapiergesetzen registriert, was den Verkauf und die Übertragung in den Vereinigten Staaten ohne Registrierung oder anwendbare Ausnahme einschränkt.
- Refinancing of existing debt structure through new notes offering
- Access to institutional debt market demonstrating market confidence
- Additional borrowing from revolving credit facility required to complete the refinancing
- Restricted offering to qualified institutional buyers may limit funding options
Insights
This strategic debt refinancing initiative by Hess Midstream Operations LP represents a significant financial maneuver in today's complex interest rate environment. The $800 million senior notes offering aims to refinance the existing 5.625% 2026 notes, potentially optimizing the company's debt structure and extending its maturity profile.
The timing of this refinancing is particularly noteworthy. With the current market expectations for potential rate cuts later in 2025, HESM is making a proactive move to potentially secure more favorable terms before any market shifts. The decision to refinance approximately two years before the 2026 notes' maturity suggests management's confidence in current market conditions for debt issuance.
The private placement nature of the offering, to qualified institutional buyers and non-U.S. persons, typically allows for more flexible terms and potentially faster execution compared to public offerings. The additional use of the revolving credit facility indicates a comprehensive approach to liability management, though investors should monitor the final pricing and terms of the new notes to assess the net impact on interest expenses and overall debt service costs.
For midstream companies like HESM, maintaining an optimal capital structure is important for supporting ongoing operations and growth initiatives. This refinancing could provide enhanced financial flexibility and potentially improved debt servicing terms, which would be particularly valuable in the current dynamic energy market environment.
Hess Midstream intends to use the net proceeds from the offering, along with borrowings under its revolving credit facility, to redeem its outstanding
The Notes are being sold only to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A and outside
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 LP
HESM 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. HESM owns oil, gas and produced water handling assets that are primarily located in the Bakken and Three Forks Shale plays in the
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of
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Investor Contact:
Jennifer Gordon
(212) 536-8244
Media Contact:
Lorrie Hecker
(212) 536-8250
Source: Hess Midstream Operations LP
FAQ
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