Houston-based EPIC Crude Holdings' focus is centered on the expansion of its Permian pipeline following the completion of the issuance of a new $1.2 billion senior secured Term Loan B due 2031. (Source: Shutterstock)
Houston-based EPIC Crude Holdings has completed the issuance of a new $1.2 billion senior secured Term Loan B due 2031, the midstream company said Oct. 16.
The company also entered into a new agreement for a super-priority revolving credit facility of $125 million due 2029, undrawn at close.
EPIC said it used the net proceeds from the refinancing to repay its $1.125 billion Term Loan B and C due 2026. Proceeds also went toward repaying its $40 million senior secured revolver due 2026.
EPIC expects to save with the refinancing more than $25 million in interest on an annual basis.
The refinancing comes at the heels of EPIC’s deal with Diamondback Energy Inc. and Kinetik Holdings Inc. to acquire stake in EPIC’s 800-mile crude pipeline, which runs from the Permian Basin to the Gulf Coast.
The company’s focus is now shifting toward the potential expansion project, said Brian Freed, CEO of EPIC, with Diamondback and Kinetik each holding 27.5% ownership and EPIC holding the remaining 45%.
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“This refinancing continues to build upon our success by providing additional financial strength and affirms the market support for our team, our strategy and our execution," said Freed. "We have created a strategic crude position focused on the Permian and Corpus Christi markets with extensive downstream and export optionality.”
S&P Global upgraded EPIC Crude Services’ credit rating to BB- from B- on Oct. 2. Moody’s Ratings upgraded EPIC’s credit rating to Ba3 on Oct. 8.
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