DALLAS, Dec. 12, 2018 /PRNewswire/ -- The EnLink
Midstream companies (EnLink), EnLink Midstream,
LLC (NYSE: ENLC), the General Partner, and EnLink
Midstream Partners, LP (NYSE: ENLK), the Master Limited
Partnership, announced today that ENLK has entered into an
$850 million, three-year unsecured
term loan agreement and that ENLC has entered into a revolving
credit agreement to refinance EnLink's two existing revolving
credit facilities into one aggregate facility of $1.75 billion (Refinanced Credit Facility).
Proceeds from the term loan were used to repay almost all of
ENLK's existing revolving credit facility. EnLink expects
borrowings and letters of credit under the Refinanced Credit
Facility to become available upon the closing of its previously
announced simplification transaction, and the proceeds from the
Refinanced Credit Facility will be used for general company
purposes, including repayment of all existing indebtedness under
EnLink's two existing revolving credit facilities and funding of
growth capital expenditures.
"This refinancing gives us the flexibility to satisfy our senior
notes maturity obligations in April
2019 without relying on the capital markets. As we continue
to execute on our highly efficient growth capital program, these
financing vehicles not only align well with our long-term funding
strategy, but also enhance EnLink's liquidity and demonstrate
strong financial support from our banking partners," said
Michael J. Garberding, President and
Chief Executive Officer of EnLink.
The $850 million term loan is an
unsecured credit facility with an interest rate calculated based on
EnLink's debt rating. Borrowings under the term loan currently bear
interest at the LIBOR Rate plus 150 basis points. The term loan can
be prepaid at any time, in whole or in part, without penalty. The
term loan contains substantially the same covenants as those
contained in the Refinanced Credit Facility. Upon the closing of
the simplification transaction, ENLC will either guarantee the term
loan or assume ENLK's obligations under the term loan
agreement.
EnLink's new Refinanced Credit Facility is unsecured and, upon
the closing of the simplification transaction and the satisfaction
of other customary conditions to availability, will permit ENLC to
borrow up to $1.75 billion on a
revolving credit basis and includes a $500
million letter of credit subfacility. ENLK will guarantee
ENLC's obligations under the Refinanced Credit Facility upon the
closing of the simplification transaction. The maturity date
of the Refinanced Credit Facility is five years from the
availability date, and pricing and fees are substantially
consistent with ENLK's current revolving credit facility terms.
Merrill Lynch, Pierce, Fenner & Smith Incorporated served as
lead arranger and Bank of America, N.A. will be the administrative
agent for both the term loan and Revolving Credit Facility. BMO
Capital Markets Corp., RBC Capital Markets, Citibank, N.A., and
Wells Fargo Securities, LLC served as joint lead arrangers for the
facilities.
About the EnLink Midstream Companies
EnLink provides
integrated midstream services across natural gas, crude oil,
condensate, and NGL commodities. EnLink operates in several
top U.S. basins and is strategically focused on the core growth
areas of the Permian's Midland and Delaware basins, Oklahoma's Midcontinent, and Louisiana's Gulf Coast. Headquartered in
Dallas, EnLink is publicly traded
through EnLink Midstream, LLC (NYSE: ENLC), the General Partner,
and EnLink Midstream Partners, LP (NYSE: ENLK), the Master Limited
Partnership. Visit www.EnLink.com for more information on how
EnLink connects energy to life.
Forward-Looking Statements
This press
release contains forward-looking statements within the meaning of
the federal securities laws. Although these statements reflect the
current views, assumptions and expectations of our management, the
matters addressed herein involve certain assumptions, risks and
uncertainties that could cause actual activities, performance,
outcomes and results to differ materially from those indicated
herein. Therefore, you should not rely on any of these
forward-looking statements. All statements, other than statements
of historical fact, included in this press release constitute
forward-looking statements, including but not limited to statements
identified by the words "forecast," "may," "believe," "will,"
"should," "plan," "predict," "anticipate," "intend," "estimate,"
and "expect" and similar expressions. Such forward-looking
statements include, but are not limited to, statements about the
timing that the Refinanced Credit Facility will become available,
the use of proceeds of the term loan and the Refinanced Credit
Facility, the proposed simplification transaction between EnLink
Midstream Partners, LP and EnLink Midstream, LLC, the timing of the
consummation of the proposed simplification transaction, if it will
be consummated at all, plans for satisfying upcoming maturity
obligations, objectives, expectations, and intentions, and other
statements that are not historical facts. Factors that could result
in such differences or otherwise materially affect our financial
condition, results of operations, or cash flows include, without
limitation,(a) the dependence on Devon for a substantial
portion of the natural gas and crude that we gather, process, and
transport, (b) developments that materially and adversely
affect Devon or other customers, (c) Devon's ability to
compete with us, (d) adverse developments in the midstream business
may reduce our ability to make distributions, (e) our
vulnerability to having a significant portion of our operations
concentrated in the Barnett Shale, (f) potential conflicts of
interest of Global Infrastructure Partners ("GIP") with us and the
potential for GIP to favor GIP's own interests to the detriment of
the unitholders, (g) GIP's ability to compete with us and the fact
that it is not required to offer us the opportunity to acquire
additional assets or businesses, (h) a default under GIP's credit
facility could result in a change in control of us, could adversely
affect the price of our common units, and could result in a default
under our credit facility, (i) continually competing for crude oil,
condensate, natural gas, and NGL supplies and any decrease in the
availability of such commodities, (j) decreases in the volumes that
we gather, process, fractionate, or transport, (k) construction
risks in our major development projects, (l) our ability to receive
or renew required permits and other approvals, (m) changes in the
availability and cost of capital, including as a result of a change
in our credit rating, (n) operating hazards, natural
disasters, weather-related issues or delays, casualty losses, and
other matters beyond our control, (o) impairments to goodwill,
long-lived assets and equity method investments, and (p) the
effects of existing and future laws and governmental regulations,
including environmental and climate change requirements and other
uncertainties. These and other applicable uncertainties, factors,
and risks are described more fully in EnLink Midstream Partners,
LP's and EnLink Midstream, LLC's filings with the Securities and
Exchange Commission, including EnLink Midstream Partners, LP's and
EnLink Midstream, LLC's Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K.
Neither EnLink Midstream Partners, LP nor EnLink Midstream, LLC
assumes any obligation to update any forward-looking
statements.
Investor Relations: Kate
Walsh, Vice President of Investor Relations, 214-721-9696,
kate.walsh@enlink.com
Media Relations: Jill
McMillan, Vice President of Public & Industry
Affairs, 214-721-9271, jill.mcmillan@enlink.com
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SOURCE EnLink Midstream