Summit Midstream Corporation announced on January 7, 2025, that its subsidiary, Summit Midstream Holdings, LLC, priced an offering of $250.0 million in aggregate principal amount of additional 8.625% Senior Secured Second Lien Notes due 2029. The notes were priced at 103.375% of par, plus accrued and unpaid interest from July 26, 2024. The offering is expected to close on or about January 10, 2025.
The Additional Notes will be issued under the same indenture as the Issuer's existing $575.0 million of 8.625% Senior Secured Second Lien Notes due 2029. They will have substantially identical terms and will form a single series, voting together with the Existing Notes. This move aims to manage the company's debt structure and liquidity.
Summit intends to use the net proceeds from this offering to repay a portion of the outstanding borrowings under its asset-based lending credit facility. The remaining proceeds will be allocated for general corporate purposes, including covering fees and expenses associated with the offering. The notes will be guaranteed on a senior second-priority basis by the company and certain subsidiaries.
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