Summit Midstream Partners, LP (ticker: SMLP) said its subsidiary Summit Midstream Holdings, LLC has executed an amendment and extension of its $1.25 billion revolving credit facility.
The maturity date of the revolving credit facility was extended by approximately 3.5 years, from November 2018 to May 2022. The facility includes a $250.0 million accordion, and has the same pricing and a similar covenant package to the previous facility. The total leverage ratio financial covenant, as defined in the credit agreement, was increased from 5.00 to 1.00 to 5.50 to 1.00 in exchange for including a new senior secured leverage ratio financial covenant of 3.75 to 1.00. The facility is supported by a syndicate of 20 institutions, the company said in a statement.
Steve Newby, President and Chief Executive Officer, commented, “We sincerely appreciate the continued support of our lenders and the confidence they have in our company. This credit facility provides SMLP with significant liquidity and flexibility for the continued development of our assets. The revolving credit facility amendment also extends our long-term debt maturity profile such that SMLP has no significant debt maturities until 2022.”
Summit’s midstream systems serve the following operations:
SMLP provides natural gas, crude oil and produced water gathering services through long-term and fee-based gathering and processing agreements with customers and counterparties operating in the Marcellus and Utica, the Williston Basin, the Barnett, the Piceance and the D-J.
