Summit Midstream Corporation Announces Plans for Additional Notes Offering

On January 7, 2025, Summit Midstream Corporation (NYSE: SMC) made public its intention to offer $250.0 million in aggregate principal amount of additional 8.625% Senior Secured Second Lien Notes due 2029. The announcement was disclosed in a press release by Summit Midstream Holdings, LLC, a subsidiary of the Company. This proposed private offering is contingent on market conditions and is aimed at eligible purchasers. The new Additional Notes are set to be issued under the same agreement as the existing $575.0 million of 8.625% Senior Secured Second Lien Notes due in 2029. Both sets of notes will constitute a single series under the same terms.

The Offering of the Additional Notes, which is exempt from registration under the Securities Act of 1933, is planned to bolster Summit Midstream’s financial position as it strives to meet corporate objectives and pay down some outstanding amounts under its asset-based lending credit facility. The proceeds from the issuance will also cater to general corporate needs, including addressing fees and expenses associated with the Offering. The new notes will carry guarantees from the Company and certain current and future subsidiaries, secured on a second-priority basis by the collateral pledged for the benefit of the ABL Facility lenders.

It is crucial to note that the Additional Notes and the related guarantees will strictly target qualified institutional buyers under Rule 144A of the Securities Act, with non-U.S. persons outside the U.S. being considered in compliance with Regulation S under the Securities Act. The Company emphasized that the offer and sale of these notes have not been registered under the Securities Act or state securities laws and may not be offered or sold in the U.S. without proper registration or exemption from registration requirements.

The offering of these Additional Notes stands as an essential strategic move for Summit Midstream Corporation, showcasing its commitment to fortifying its financial structure and operational capabilities as it navigates the dynamic energy market environment.

For further details, the complete press release concerning this transaction has been attached as Exhibit 99.1 to the filing. Additionally, the Company has supplemented its risk factors section with information on ongoing discussions regarding potential strategic transactions with third parties.

Investors and stakeholders will undoubtedly be watching closely as Summit Midstream continues to make strategic financial moves to enhance its market position and drive sustainable growth in the energy infrastructure sector.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Summit Midstream’s 8K filing here.

Summit Midstream Company Profile

Summit Midstream Corporation focuses on owning, developing, and operating midstream energy infrastructure assets primarily shale formations in the continental United States. It operates natural gas, crude oil, and produced water gathering systems in four unconventional resource basins, including the Williston Basin in North Dakota, which includes the Bakken and Three Forks shale formations; the Denver-Julesburg Basin that consists of the Niobrara and Codell shale formations in Colorado and Wyoming; the Fort Worth Basin in Texas, which comprises the Barnett Shale formation; and the Piceance Basin in Colorado, which includes the Mesaverde formation, as well as the emerging Mancos and Niobrara Shale formations.