Archrock Announces Tender Offer Results for Senior Notes
Archrock Announces Early Results for Tender Offer
Archrock, Inc. (NYSE: AROC) recently revealed significant updates regarding its tender offer for the outstanding 6.875% Senior Unsecured Notes due 2027. The company received tenders amounting to approximately $312.3 million for these Notes in a cash tender offer intended to purchase up to $200 million of the $500 million total outstanding. This financial endeavor underscores Archrock's strategic focus on enhancing its capital structure.
Details of the Tender Offer
The tender offer was officially announced on August 12, and it included specific terms and conditions for participation. As indicated, the Early Tender Deadline was set for 5:00 p.m. New York City time on August 23. Simultaneously, the initial settlement date is reported to be August 26, 2024.
Expiration and Withdrawal Information
The offer is scheduled to expire at 5:00 p.m. New York City time on September 10, unless there are extensions or early terminations. Importantly, the withdrawal deadline for any validly tendered Notes was also on August 23.
Oversubscription and Proration Details
The response to the tender offer was robust, leading to an oversubscription scenario where the demanded total exceeded the available Tender Cap. Since the total validly tendered amount exceeds $200 million, Archrock will accept tenders on a prorated basis, utilizing a pro-ration factor of approximately 64%. This means payment for the accepted Notes will be processed promptly on the initial settlement date, contingent upon fulfilling the offer conditions.
Role of Wells Fargo Securities
To facilitate this tender offer, Archrock has appointed Wells Fargo Securities, LLC as the Dealer Manager. Stakeholders seeking clarification on the terms of the offer or have queries can contact Wells Fargo Securities directly at the provided communication numbers.
About Archrock, Inc.
Archrock operates as an energy infrastructure firm focused on midstream natural gas compression. The company's mission is to support its clients in the safe, efficient, and environmentally responsible production of natural gas. As a leading supplier of compression services in the energy sector across the United States, Archrock is also recognized for its commitment to aftermarket services supporting compression equipment ownership.
Archrock Partners
Furthermore, Archrock Partners serves as a crucial entity within the Archrock framework, offering natural gas compression services predominantly to the oil and natural gas sectors across the nation. Archrock maintains full ownership of the limited and general partnership interests in this division.
Investor Relations
For stakeholders seeking further information or insights regarding Archrock, contacting their Investor Relations department is encouraged. Megan Repine, VP of Investor Relations, is available at 281-836-8360 or through their email for inquiries.
Media Relations
For media-related inquiries, Andrew Siegel and Jed Repko of Joele Frank are reachable at 212-355-4449, ready to assist with any information regarding the recent announcements.
Frequently Asked Questions
What is the significance of Archrock's tender offer?
Archrock's tender offer aims to optimize its capital structure by repurchasing some of its outstanding debt, reflecting a strategic move to manage leverage effectively.
How much did Archrock receive in tenders for the Notes?
The company received tenders for approximately $312.3 million, exceeding the $200 million target set for the tender offer.
What happens if the tender offer is oversubscribed?
If the offer is oversubscribed, as in this case, Archrock will accept tenders on a prorated basis, meaning not all tenders will necessarily be accepted in full.
When will the initial settlement date occur?
The initial settlement date for the accepted offers is scheduled for August 26, 2024.
Who can investors contact for further inquiries?
Investors can reach out to Megan Repine, VP of Investor Relations, at 281-836-8360 for any questions related to the tender offer.
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