Summit Midstream Corporation Announces Proposed Offering of $250 Million of Additional 8.625% Senior Secured Second Lien Notes Due 2029
Summit Midstream (NYSE: SMC) has announced an offering of $250 million in additional 8.625% Senior Secured Second Lien Notes due 2029. These Additional Notes will be issued under the same indenture as the company's existing $575 million notes of the same type and will have substantially identical terms, except for the issue date and price. The net proceeds from this offering will be used to repay a portion of the outstanding borrowings under the company's asset-based lending credit facility and for general corporate purposes, including paying fees and expenses associated with the offering.
The Additional Notes will be guaranteed on a senior second-priority basis by the company and certain of its existing and future subsidiaries. Initially, they will be secured on a second-priority basis by the same collateral pledged for the benefit of the company's lenders under the ABL Facility. The offering is to qualified institutional buyers under Rule 144A and non-U.S. persons outside the United States in compliance with Regulation S under the Securities Act of 1933.
This press release does not constitute an offer to sell or a solicitation to buy any security, nor will there be any sale of the Additional Notes or related guarantees in any jurisdiction where such activities would be unlawful.
Summit Midstream (NYSE: SMC) ha annunciato un'offerta di 250 milioni di dollari in ulteriori Note Senior Garantite di Secondo Livello con un tasso d'interesse dell'8,625% che scadranno nel 2029. Queste Note Aggiuntive saranno emesse sotto lo stesso contratto delle note esistenti dell'azienda di 575 milioni di dollari dello stesso tipo e avranno condizioni sostanzialmente identiche, ad eccezione della data di emissione e del prezzo. I proventi netti di questa offerta saranno utilizzati per rimborsare una parte dei prestiti in essere sotto la linea di credito basata sugli asset dell'azienda e per scopi corporativi generali, inclusi il pagamento di commissioni e spese associate all'offerta.
Le Note Aggiuntive saranno garantite su una base senior di secondo livello dalla società e da alcune delle sue filiali esistenti e future. Inizialmente, saranno garantite su una base di secondo livello dal medesimo collaterale impegnato a beneficio dei creditori della società nell'ambito dell'ABL Facility. L'offerta è destinata a compratori istituzionali qualificati secondo la Regola 144A e a persone non statunitensi al di fuori degli Stati Uniti in conformità con il Regolamento S ai sensi del Securities Act del 1933.
Questo comunicato stampa non costituisce un'offerta di vendita o una sollecitazione all'acquisto di alcun titolo, né ci sarà vendita delle Note Aggiuntive o garanzie correlate in alcuna giurisdizione dove tali attività sarebbero illecite.
Summit Midstream (NYSE: SMC) ha anunciado una oferta de 250 millones de dólares en Notas Senior Garantizadas de Segundo Grado adicionales con un interés del 8.625% con vencimiento en 2029. Estas Notas Adicionales se emitirán bajo la misma escritura que las notas existentes de la empresa por un total de 575 millones de dólares del mismo tipo y tendrán términos sustancialmente idénticos, excepto por la fecha y el precio de emisión. Los ingresos netos de esta oferta se utilizarán para pagar una parte de los préstamos pendientes bajo la línea de crédito basada en activos de la empresa y para fines corporativos generales, incluyendo el pago de tarifas y gastos asociados con la oferta.
Las Notas Adicionales estarán garantizadas en una base de segundo nivel por la empresa y algunas de sus subsidiarias existentes y futuras. Inicialmente, estarán garantizadas en una base de segundo nivel por el mismo colateral que se comprometió en beneficio de los prestamistas de la empresa bajo la ABL Facility. La oferta está destinada a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses fuera de los Estados Unidos, en cumplimiento con el Reglamento S bajo la Ley de Valores de 1933.
Este comunicado de prensa no constituye una oferta de venta ni una solicitud para comprar ningún valor, y no habrá venta de las Notas Adicionales o garantías relacionadas en ninguna jurisdicción donde tales actividades sean ilegales.
Summit Midstream (NYSE: SMC)는 2029년 만기 8.625%의 추가 2순위 담보채권 2억5천만 달러의 공모를 발표했습니다. 이 추가 채권은 회사 기존의 동일 유형 5억7천5백만 달러의 채권과 동일한 조건하에 발행되며, 발행 날짜와 가격을 제외하고는 기본 조건이 거의 같습니다. 이번 공모로 발생하는 순수익은 회사의 자산 기반 대출 시설의 미상환 대출의 일부 상환 및 공모 관련 수수료와 비용을 포함한 일반 운영비에 사용됩니다.
추가 채권은 회사와 특정 기존 및 미래 자회사에 의해 2순위로 보증됩니다. 처음에는 ABL 시설의 대출자들을 위해 제공된 동일한 담보에 의해 2순위로 담보됩니다. 이번 공모는 144A 규칙에 따른 자격을 갖춘 기관 투자자 및 미국 외의 비미국인에게 제공됩니다. 이는 1933년 증권법에 따른 규제 S를 준수합니다.
이 보도 자료는 어떤 증권을 판매하거나 구매를 요청하는 것을 구성하지 않으며, 이러한 활동이 불법인 관할권에서는 추가 채권 또는 관련 보증의 판매가 이루어지지 않을 것입니다.
Summit Midstream (NYSE: SMC) a annoncé une émission de 250 millions de dollars supplémentaires d'Obligations Senior Sécurisées de Second Rang à un taux de 8,625% arrivant à échéance en 2029. Ces Obligations Supplémentaires seront émises sous le même contrat que les obligations existantes de l'entreprise d'un montant de 575 millions de dollars du même type et auront des conditions pratiquement identiques, à l'exception de la date d'émission et du prix. Les produits nets de cette émission seront utilisés pour rembourser une partie des prêts en cours dans le cadre de la ligne de crédit basée sur les actifs de l'entreprise et pour des fins générales d'entreprise, y compris le paiement des frais et dépenses associés à l'émission.
Les Obligations Supplémentaires seront garanties sur une base de deuxième niveau par la société et certaines de ses filiales existantes et futures. Initialement, elles seront garanties sur une base de deuxième niveau par les mêmes garanties mises en gage au bénéfice des créanciers de la société dans le cadre de l'ABL Facility. L'offre s'adresse aux acheteurs institutionnels qualifiés selon la Règle 144A et aux personnes non américaines en dehors des États-Unis, conformément à la Réglementation S du Securities Act de 1933.
Ce communiqué de presse ne constitue pas une offre de vente ou une sollicitation d'achat de titres, ni n'entraînera la vente des Obligations Supplémentaires ou des garanties connexes dans une juridiction où de telles activités seraient illégales.
Summit Midstream (NYSE: SMC) hat ein Angebot von 250 Millionen Dollar an zusätzlichen 8,625% Senior Gesicherten Nachrangige Anleihen mit Fälligkeit im Jahr 2029 bekannt gegeben. Diese zusätzlichen Anleihen werden unter demselben Vertrag wie die bestehenden Anleihen des Unternehmens in Höhe von 575 Millionen Dollar des gleichen Typs ausgegeben und werden im Wesentlichen identische Bedingungen haben, abgesehen vom Emissionsdatum und dem Preis. Die Nettoerlöse aus diesem Angebot werden verwendet, um einen Teil der ausstehenden Darlehen unter der kreditbasierten Kreditfazilität des Unternehmens zurückzuzahlen und für allgemeine Unternehmenszwecke, einschließlich der Zahlung von Gebühren und Ausgaben im Zusammenhang mit dem Angebot.
Die zusätzlichen Anleihen werden auf einer nachrangigen Basis von der Gesellschaft und bestimmten bestehenden und zukünftigen Tochtergesellschaften garantiert. Zunächst werden sie auf einer nachrangigen Basis durch dieselben Sicherheiten gesichert, die zugunsten der Kreditgeber des Unternehmens im Rahmen der ABL-Fazilität verpfändet wurden. Das Angebot richtet sich an qualifizierte institutionelle Käufer gemäß Regel 144A und an nicht-US-Personen außerhalb der Vereinigten Staaten in Übereinstimmung mit der Regulierung S gemäß dem Securities Act von 1933.
Diese Pressemitteilung stellt kein Angebot zum Verkauf oder eine Aufforderung zum Kauf von Wertpapieren dar, noch wird es in einer Jurisdiktion, in der solche Aktivitäten rechtswidrig wären, einen Verkauf der zusätzlichen Anleihen oder der damit verbundenen Garantien geben.
- The offering will raise $250 million in additional capital.
- Proceeds will be used to repay outstanding borrowings, reducing debt.
- The issuance of Additional Notes increases the company's debt load.
Insights
This debt offering marks a significant financial move for Summit Midstream. The
The second-lien position and the high yield rate indicate elevated risk levels, as these notes are subordinate to first-lien debt in the capital structure. However, the secured nature of the notes, backed by company assets, provides some protection for noteholders. The offering's restriction to qualified institutional buyers under Rule 144A suggests sophisticated investors will need to carefully evaluate the risk-reward profile, considering SMC's
The strategic implications of this debt restructuring deserve careful attention. By replacing ABL borrowings with fixed-rate notes, SMC is effectively locking in its cost of capital for a longer term, though at a premium rate. This could be viewed as a defensive move against potential future interest rate volatility. The decision to issue additional notes under the same indenture as existing ones streamlines the debt structure and potentially improves operational flexibility.
For a company with a market cap of
The Additional Notes will be guaranteed on a senior second-priority basis by the Company and certain of the Company's existing and future subsidiaries and will initially be secured on a second-priority basis by the same collateral that is pledged for the benefit of the Company's lenders under the ABL Facility.
The Additional Notes and the related guarantees are being offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to non-
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security, nor shall there be any sale of the Additional Notes and the related guarantees or any other security of the Company, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. Any offers of the Additional Notes will be made only by means of a private offering memorandum.
About Summit Midstream Corporation
SMC is a value-driven corporation focused on developing, owning and operating midstream energy infrastructure assets that are strategically located in the core producing areas of unconventional resource basins, primarily shale formations, in the continental
Forward-Looking Statements
This press release includes certain statements concerning expectations for the future that are forward-looking within the meaning of the federal securities laws. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements and may contain the words "expect," "intend," "plan," "anticipate," "estimate," "believe," "will be," "will continue," "will likely result," and similar expressions, or future conditional verbs such as "may," "will," "should," "would" and "could," including, but not limited to, statements regarding the Issuer's plans to issue the Additional Notes, the intended use of the net proceeds therefrom and other aspects of the Offering and the Additional Notes. In addition, any statement concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies and possible actions taken by SMC or its subsidiaries are also forward-looking statements. Forward-looking statements also contain known and unknown risks and uncertainties (many of which are difficult to predict and beyond management's control) that may cause SMC's actual results in future periods to differ materially from anticipated or projected results. An extensive list of specific material risks and uncertainties affecting SMC is contained in its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, which the Company filed with the Securities and Exchange Commission on November 12, 2024, as amended and updated from time to time. Any forward-looking statements in this press release are made as of the date of this press release and SMC undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.
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SOURCE Summit Midstream Corporation
FAQ
What is the purpose of Summit Midstream's $250 million note offering?
What are the terms of the new notes issued by Summit Midstream (SMC)?
How will the additional notes be secured?
Who can purchase the new notes issued by Summit Midstream (SMC)?
Will the $250 million note offering by Summit Midstream affect its debt levels?
What will the proceeds from the Summit Midstream (SMC) note offering be used for?
