Archrock Announces Early Results for Tender Offer
Archrock, Inc. (NYSE: AROC) has shared important updates about its tender offer for the outstanding 6.875% Senior Unsecured Notes due in 2027. The company has received tenders totaling approximately $312.3 million for these Notes in a cash tender offer aimed at purchasing up to $200 million of the $500 million total outstanding. This initiative highlights Archrock's strategic commitment to improving its capital structure.
Details of the Tender Offer
The tender offer was officially announced on August 12, outlining specific terms and conditions for participation. The Early Tender Deadline was set for 5:00 p.m. New York City time on August 23, and the initial settlement date is scheduled for August 26, 2024.
Expiration and Withdrawal Information
The offer is set to expire at 5:00 p.m. New York City time on September 10, unless there are any extensions or early terminations. It's also important to note that the withdrawal deadline for any validly tendered Notes was on August 23.
Oversubscription and Proration Details
The response to the tender offer was strong, resulting in an oversubscription where the total demand exceeded the available Tender Cap. Since the amount tendered surpassed $200 million, Archrock will accept tenders on a prorated basis, applying a pro-ration factor of about 64%. Payments for the accepted Notes will be processed promptly on the initial settlement date, provided that all offer conditions are met.
Role of Wells Fargo Securities
To assist with this tender offer, Archrock has appointed Wells Fargo Securities, LLC as the Dealer Manager. Stakeholders who have questions about the offer or need clarification can reach out to Wells Fargo Securities using the provided contact numbers.
About Archrock, Inc.
Archrock is an energy infrastructure company specializing in midstream natural gas compression. The firm is dedicated to helping its clients produce natural gas safely, efficiently, and in an environmentally responsible manner. As a leading provider of compression services across the United States, Archrock is also known for its commitment to aftermarket services that support the ownership of compression equipment.
Archrock Partners
Additionally, Archrock Partners plays a vital role within the Archrock organization, providing natural gas compression services primarily to the oil and natural gas industries nationwide. Archrock fully owns the limited and general partnership interests in this division.
Investor Relations
Stakeholders looking for more information or insights about Archrock are encouraged to contact their Investor Relations department. Megan Repine, the VP of Investor Relations, is available at 281-836-8360 or via email for any inquiries.
Media Relations
For media inquiries, Andrew Siegel and Jed Repko from Joele Frank can be reached at 212-355-4449, ready to assist with any information regarding the latest announcements.
Frequently Asked Questions
What is the significance of Archrock's tender offer?
Archrock's tender offer is designed to enhance its capital structure by repurchasing some of its outstanding debt, which reflects a strategic approach to managing leverage effectively.
How much did Archrock receive in tenders for the Notes?
The company received tenders totaling approximately $312.3 million, surpassing the $200 million target set for the tender offer.
What happens if the tender offer is oversubscribed?
In the event of oversubscription, as seen in this case, Archrock will accept tenders on a prorated basis, meaning that not all tenders will be accepted in full.
When will the initial settlement date occur?
The initial settlement date for the accepted offers is set for August 26, 2024.
Who can investors contact for further inquiries?
Investors can contact Megan Repine, VP of Investor Relations, at 281-836-8360 for any questions related to the tender offer.
