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Permian Basin midstream company Kinetik Holdings has entered a $150 million agreement with PNC Bank to pay down outstanding borrowings on its term loan, decreasing the remaining balance to $1 billion, according to an April 3 press release.
The company and bank created a $150 million accounts receivable securitization facility, scheduled to mature in April 2025, with an ongoing renewal mechanism, according to a press release from Kinetik.
Accounts receivable securitization is a financing technique in which a company converts its accounts receivable, or outstanding invoices, into financial instruments that can be sold to investors, according to information on PNC’s website.
The initial base of $150 million will vary with the value Kinetik’s accounts receivable balance. The maturity of the term loan will extend to Dec. 8, 2026.
Kinetik is headquartered in Midland, Texas, with operations focused on transport of products from the Delaware Basin to the Gulf Coast.
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