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Suntrust, Barclays Lead Syndicated $150MM Revolver for WaterBridge Holdings

June 28, 2019, 08:30 AM
Filed Under: Industry News
Related: Barclays, SunTrust

WaterBridge Holdings LLC announced the closing of significant transactions that provide additional expansion capital and operational scale in the Southern Delaware Basin. 

WaterBridge's $1.0 billion Term Loan B is priced at L+575 / 97.5 OID and matures in June 2026.  WaterBridge used the net proceeds from the Term Loan B to repay in full borrowings outstanding under its existing debt facilities, fund the recently closed acquisition of the Delaware Basin produced water infrastructure of PDC Energy Inc.  The assets are located in Reeves and Culberson counties and include 82 miles of pipeline and seven disposal wells with 180 mbpd of permitted capacity. 

Contemporaneously with the closing, WaterBridge and PDC entered into long-term produced water management, recycle and supply water agreements for PDC's operated acreage within an extensive area of mutual interest. With the addition of the PDC assets, WaterBridge owns and operates a network of 62 produced water disposal wells in the Southern Delaware Basin with 1,400 mbpd of permitted capacity connected by over 630 miles of pipelines.

In addition to the Term Loan B, WaterBridge has entered into a $150 million revolving credit facility led by SunTrust Bank and Barclays with a syndicate of 13 financial institutions.

Following these transactions and a previously-announced minority investment from GIC Private Limited, Singapore's sovereign wealth fund, WaterBridge and its affiliates have more than $500 million in liquidity and available capital, including a framework for incremental equity from Five Point Energy and GIC to pursue accretive M&A and organic growth opportunities.

David Capobianco, CEO and Managing Partner of Five Point Energy and Chairman of WaterBridge, said, "The market's enthusiasm for WaterBridge's term loan further validates our core business model of building massive, integrated, produced water handling networks that offer producers the capacity and redundancy they need to scale their development programs."

"We are pleased to have the support of our new institutional partners as we continue to grow to meet our customers' needs," said Steven Jones, Co-President and Chief Financial Officer of WaterBridge.  "The Term Loan B and our new credit facility provide long-term capital and liquidity that support our near-term requirements and can also scale with our company to fund future accretive growth opportunities.  We are now in the advantageous position of delaying a potential initial public offering until such time as equity market conditions become more compelling for the energy industry generally."

Barclays served as financial advisor to WaterBridge in connection with the Term Loan B transaction.  SunTrust Bank and Barclays served as financial advisors to WaterBridge in connection with the credit facility.  Bracewell LLP served as legal advisor to WaterBridge in connection with both transactions.

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