(Source: Summit Midstream)
Summit Midstream Partners commenced a tender offer on all of its outstanding 8.500% senior secured second lien notes due 2026, the company said on July 17.
The company’s subsidiaries Summit Midstream Holdings and Summit Midstream Finance delivered a conditional redemption notice regarding all of Summit’s 5.75% senior notes due 2025. If conditions are satisfied, the 2025 notes will be redeemed on Aug. 16.
Summit said it anticipates the settlement date for the notes to be July 26.
Summit also announced July 17 a proposed offering of $500 million in aggregate principal amount of new senior secured second lien notes due 2029.
Summit intends to use the net proceeds from the offering, combined with cash on hand and borrowings from the ABL facility, to repurchase all of the company’s 8.500% senior secured second lien notes due 2026 and 5.75% senior notes due 2025.
The company also plans to pay accrued and unpaid interest on the 2026 secured notes 2025 notes.
Summit expects the new notes to be guaranteed on a senior second-priority basis.
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