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JPMorgan Chase, Others Provide $1.1B Revolver to Archrock Partners

March 31, 2017, 07:16 AM
Filed Under: Oil & Gas

Archrock Partners, L.P. , a provider of natural gas compression services, announced that the partnership has closed on a new five-year $1.1 billion asset-based revolving credit facility. The new credit facility will mature on March 30, 2022, except that if as of December 2, 2020 any portion of the company's existing Senior Notes due April 2021 are outstanding on such date, then the new credit facility shall instead mature on December 2, 2020. Proceeds from the facility were used to repay in full borrowings under the partnership’s existing $825 million revolving credit facility and $150 million term loan which would have matured in May 2018. All commitments under the old credit facility have been terminated.

“We are pleased to announce the closing of our new credit facility and appreciate the support of existing and new lenders,” said Brad Childers, Chairman, President and Chief Executive Officer of Archrock Partners’ managing general partner. “The new credit facility demonstrates support for Archrock Partners’ stable, fee-based, production related business and provides additional liquidity as we continue to pursue industry growth opportunities.”

Under the new credit facility the partnership’s maximum Total Leverage Ratio, as defined in the credit agreement, is 5.95:1.00 through the fourth quarter of 2017; 5.75:1.00 from the first quarter of 2018 through the fourth quarter of 2018; 5.50:1.00 in the first and second quarters of 2019, and 5.25:1.00 thereafter (except that the Total Leverage Ratio for any fiscal quarter ending after June 30, 2019 during which a Specified Acquisition (as defined in the credit agreement) occurs and the following two fiscal quarters shall instead not be greater than 5.50:1.00). The maximum Senior Secured Leverage Ratio, as defined in the credit agreement, is 3.50:1.00; and the minimum Interest Coverage Ratio, as defined in the credit agreement, is 2.50:1.00.

The syndicate of 18 banks is led by JPMorgan Chase, N.A. as Joint Lead Arranger, Joint Book Runner, and Administrative Agent; and Wells Fargo Securities, LLC, Bank of America N.A., Regions Bank, Royal Bank of Canada, The Toronto-Dominion Bank, and The Bank of Nova Scotia as Joint Lead Arrangers and Joint Book Runners.

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