Crestwood Midstream Announces Pricing of Private Offering of $500 Million of 5.75% Senior Notes Due 2025
March 07 2017 - 3:42PM
Business Wire
Crestwood Midstream Partners LP (“CMLP”), a wholly-owned
subsidiary of Crestwood Equity Partners LP (NYSE: CEQP), announced
today that it has priced $500 million in aggregate principal amount
of 5.75% unsecured Senior Notes due 2025 (the “Notes”) in a private
offering that is exempt from the registration requirements of the
Securities Act of 1933, as amended (the “Securities Act”). The
Notes will be guaranteed on a senior unsecured basis by all of
CMLP’s subsidiaries that guarantee its existing notes and the
indebtedness under its revolving credit facility. The Company
expects to close the offering on March 14, 2017.
CMLP expects to use the net proceeds from this offering,
together with borrowings under its revolving credit facility, to
fund two concurrent cash tender offers (the “Tender Offers”) to
purchase any and all of its outstanding 6.0% Senior Notes due 2020
and 6.125% Senior Notes due 2022 (collectively, the “Tender Notes”)
and for general partnership purposes. The Tender Offers are being
made pursuant to an Offer to Purchase dated March 7, 2017. To the
extent that the Tender Offers are not completed or the net proceeds
of this offering exceed the amount needed to fund the Tender
Offers, CMLP may use the remaining net proceeds from the offering
for general partnership purposes, which may include redeeming or
otherwise repurchasing Tender Notes, reducing borrowings under its
revolving credit facility, repaying other indebtedness and funding
working capital, capital expenditures and acquisitions.
The Notes and the related guarantees will be offered only to
qualified institutional buyers in reliance on the exemption from
registration set forth in Rule 144A under the Securities Act, and
outside the United States to non-U.S. persons in reliance on the
exemption from registration set forth in Regulation S under the
Securities Act. The Notes and the related guarantees have not been
registered under the Securities Act, or the securities laws of any
state or other jurisdiction, and may not be offered or sold in the
United States without registration or an applicable exemption from
the Securities Act and applicable state securities or blue sky
laws.
This press release shall not constitute an offer to sell, or the
solicitation of an offer to buy, any securities, nor shall there be
any sales of the Notes in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
This notice is being issued pursuant to and in accordance with Rule
135(c) under the Securities Act.
Forward-Looking Statements
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal securities law. Such forward-looking statements
are subject to a variety of known and unknown risks, uncertainties,
and other factors that are difficult to predict and many of which
are beyond management’s control. These risks and assumptions are
described in CMLP’s most recent annual report on Form 10-K and
other reports that are available from the United States Securities
and Exchange Commission. Readers are cautioned not to place undue
reliance on forward-looking statements, which reflect management’s
view only as of the date made. We undertake no obligation to update
any forward-looking statement, except as otherwise required by
law.
About Crestwood Midstream Partners LP
Houston, Texas, based CMLP is a limited partnership and
wholly-owned subsidiary of CEQP that owns and operates midstream
businesses in multiple unconventional shale resource plays across
the United States. CMLP is engaged in the gathering, processing,
treating, compression, storage and transportation of natural gas;
storage, transportation, terminalling, and marketing of NGLs; and
gathering, storage, terminalling and marketing of crude oil.
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Crestwood Midstream Partners LPInvestor
ContactJosh Wannarka, 713-380-3081Vice President, Investor
Relationsjosh.wannarka@crestwoodlp.com
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