Western Midstream Announces Early Tender Results of Cash Tender Offers For Up To $500 Million in Aggregate Principal Amount of Senior Notes
Western Midstream Partners, LP (WES) announced the early tender results of its cash tender offers, aimed at purchasing up to $500 million of outstanding senior notes. As of August 25, 2021, valid tenders were received for various series of notes, with the Maximum Principal Amount fully subscribed by specific notes, including 3.950% and 3.100% Senior Notes due in 2025. The Offers are set to expire on September 9, 2021. Note holders are entitled to receive a $30 early tender premium, and no 4.500% or 4.750% Senior Notes will be accepted for purchase.
- Successful early tender results indicate strong interest, with $500 million in maximum principal amount targeted.
- WES will accept a significant amount of validly tendered notes, enhancing liquidity and reducing future interest obligations.
- No acceptance for 4.500% and 4.750% Senior Notes due 2028 raises concerns about value retention for those particular notes.
HOUSTON, Aug. 26, 2021 /PRNewswire/ -- Western Midstream Partners, LP (NYSE: WES) today announced the early tender results of the previously announced tender offers (each, an "Offer" and, collectively, the "Offers") by its wholly owned subsidiary, Western Midstream Operating, LP (the "Partnership") to purchase up to
The terms and conditions of the Offers are set forth in the Partnership's Offer to Purchase, dated August 12, 2021 (the "Offer to Purchase"). The Offer to Purchase relates to seven separate Offers, one for each series of notes set forth in the table below (each series, a "Series of Notes," and such notes, collectively, the "Notes").
As of 5:00 p.m., New York City time, on August 25, 2021 (such time and date, the "Early Tender Time"), according to information provided by D.F. King & Co., Inc., who is acting as Tender Agent and Information Agent for the Offers, the Partnership had received valid tenders from holders of the Notes as outlined in the table below. Withdrawal rights for the Notes expired at 5:00 p.m., New York City time, on August 25, 2021.
Aggregate Principal Amount Previously Outstanding (in | U.S. dollars per U.S. | |||||||
Title of Notes | CUSIP Number/ISIN | Principal Amount Tendered (in U.S. dollars) | Principal | Acceptance | Tender Offer | Early | Total | |
| 958254 AE4 / US958254AE48 | 1 | ||||||
958667 AB3 / US958667AB34 | 2 | |||||||
958254 AB0 / US958254AB09 | 3 | |||||||
Floating-Rate Senior Notes due 2023 | 958667 AD9 / US958667AD99 | 4 | ||||||
958254 AF1 / US958254AF13 | 5 | |||||||
958254 AH7 / US958254AH78 | 6 | |||||||
958254 AK0 / US958254AK08 | 7 |
__________________ | ||
(1) | Does not include accrued interest, which will also be payable as provided in the Offer to Purchase. | |
(2) | Includes the Early Tender Premium. | |
(3) | As of August 11, 2021, the |
The amounts of each Series of Notes accepted for purchase by the Partnership was determined in accordance with the Acceptance Priority Levels set forth in the table above. The Maximum Principal Amount has been fully subscribed by the
The applicable consideration for each
MUFG Securities Americas Inc., TD Securities (USA) LLC and Wells Fargo Securities, LLC are acting as Dealer Managers and D.F. King & Co., Inc. is acting as the Tender Agent and Information Agent for the Offers. Requests for documents may be directed to D.F. King & Co., Inc. at (866) 796-6867 or wes@dfking.com. Questions regarding the Offers may be directed to MUFG Securities Americas Inc. at (877) 744-4532, TD Securities (USA) LLC at LM@tdsecurities.com or Wells Fargo Securities, LLC at (866) 309-6316.
This announcement is for informational purposes only and is not an offer to purchase or sell or a solicitation of an offer to purchase or sell, with respect to any securities, including in connection with the Offers. The Offers to purchase the Notes are only being made pursuant to the terms of the Offer to Purchase. The Offers are not being made in any state or jurisdiction in which such Offers would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. None of the Partnership, the Dealer Managers, or the Tender Agent and Information Agent is making any recommendation as to whether or not holders should tender their Notes in connection with the Offers.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed to acquire, own, develop, and operate midstream assets. With midstream assets located in the Rocky Mountains, North-central Pennsylvania, Texas, and New Mexico, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and as an agent for its customers under certain contracts.
This news release contains forward-looking statements, including statements relating to the offering and the tender offers, including the expected timing thereof and the anticipated use of proceeds therefrom, as applicable. These statements involve risks and uncertainties that could cause actual results to differ materially from projected results. WES and its general partner believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release. These factors include the factors described in the "Risk Factors" section of WES's most-recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.
WESTERN MIDSTREAM CONTACT
Kristen S. Shults
Senior Vice President, Finance and Communications
Kristen.Shults@westernmidstream.com
832.636.6000
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SOURCE Western Midstream Partners, LP