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American Midstream Partners Announces Upsizing of Revolving Credit Facility to $900 Million; Over $275 Million of Available Liquidity

03/20/2017

HOUSTON--(BUSINESS WIRE)-- American Midstream Partners, LP (NYSE: AMID) (“American Midstream” or “Partnership”) announced today that it has amended and upsized its secured revolving credit facility (the "Amended Credit Facility") from $750 million to $900 million. The Amended Credit Facility also provides an accordion feature allowing for an additional $200 million of capacity, subject to customary terms and conditions, resulting in a maximum borrowing capacity of $1.1 billion.

The Amended Credit Facility has a maturity date of September 5, 2019. Borrowings under the Amended Credit Facility bear interest on the outstanding principal amount at a rate equal to LIBOR plus 2.00% - 3.25% for LIBOR-based loans and base rate plus 1.00% - 2.25% for base-rate loans.

Concurrent with upsizing the revolving credit facility, the Partnership released it’s $300 million 8.50% senior unsecured notes from escrow. Proceeds from the issuance were used to pay off JP Energy Partners, LP revolving credit facility and paydown outstanding borrowings on American Midstream’s revolving credit facility. Though these transactions, American Midstream now has over $275 million in available liquidity. On a Pro Forma basis, as of December 31, 2016, the Partnership had a leverage ratio of approximately 4.0 times.

 

Pro Forma Capitalization

(unaudited financials, $ in millions)
 
          AMID     JPEP       Pro Forma
12/31/16     12/31/16     Adj.     12/31/16
 
AMID Revolving Credit Facility $ 711 $ - $ (116 )

1

$ 595
JPEP Revolving Credit Facility - 178 (178 )

2

-
Less: 3.77% Senior Secured Notes due 2031   60       -       (60 )

3

    -  
Total Compliance Secured Debt $ 771 $ 178 $ (354 ) $ 595

 

8.5 % Senior Notes due 2021 - - 300   300  
Total Compliance Debt - - - $ 895
 
Pro Forma Liquidity:
Revolver Capacity $ 900
Less: Credit Facility Drawn (595 )
Less: Letters of Credit (27 )
Cash   6  
Total Pro Forma Liquidity $ 283
 
Notes:                              
1 Partial pay down of American Midstream's credit facility
2 Full pay down of JP Energy credit facility
3 3.77% notes are non-recourse to the Partnership and not included in compliance calculations
 

The Amended Credit Facility was arranged by Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC who acted as Joint Lead Arrangers and Joint Book Mangers. Bank of America, N.A. acted as Administrative Agent, Collateral Agent and L/C Issuer. Wells Fargo Bank, National Association, acted as Syndication Agent. Bank of Montreal, Capital One National Association, CITIBANK, N.A., Suntrust Bank, Natixis, New York Branch, ABN AMRO Capital USA LLC, Barclays Bank PLC, Royal Bank of Canada, Santander Bank, N.A. and BNP Paribas acted as Co-Documentation Agents.

About American Midstream Partners, LP

American Midstream Partners, LP is a growth-oriented limited partnership formed to provide critical midstream infrastructure that links producers of natural gas, crude oil, NGLs, condensate and specialty chemicals to end-use markets. American Midstream’s assets are strategically located in some of the most prolific onshore and offshore basins in the Permian, Eagle Ford, East Texas, Bakken and Gulf Coast. American Midstream owns or has an ownership interest in approximately 4,000 miles of interstate and intrastate pipelines, as well as ownership in gas processing plants, fractionation facilities, an offshore semisubmersible floating production system with nameplate processing capacity of 80 MBbl/d of crude oil and 400 MMcf/d of natural gas; and terminal sites with approximately 6.7 MMBbls of storage capacity.

For more information about American Midstream Partners, LP, visit www.americanmidstream.com.

Forward Looking Statements

This press release includes forward-looking statements. These statements relate to, among other things, projections of operational volumetrics and improvements, growth projects, cash flows and capital expenditures. We have used the words "anticipate,” "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," "potential," and similar terms and phrases to identify forward-looking statements in this press release. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect.

Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors, which are described in greater detail in our filings with the SEC. Please see “Risk Factors” and other disclosures included in our Annual Report on Form 10-K for the year ended December 31, 2015 filed on March 7, 2016, our Form 10-Q for the quarter ended September 30, 2016, filed on November 08, 2016, and our other filings with the SEC. All future written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. The forward-looking statements herein speak as of the date of this press release. We undertake no obligation to update any information contained herein or to publicly release the results of any revisions to any forward-looking statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of this press release.

Source: American Midstream Partners, LP

Investor Contact

American Midstream Partners, LP

Mark Buscovich, 713-815-3967

Manager of Finance

mbuscovich@americanmidstream.com