Archrock Completes $700 Million Senior Notes Offering
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Archrock Completes $700 Million Senior Notes Offering
Archrock, Inc. (NYSE: AROC) has successfully completed its previously announced private offering, raising an impressive $700 million in a senior notes offering. This offering was executed by Archrock Partners, L.P., a wholly-owned subsidiary of Archrock, utilizing a 6.625% interest rate set to mature in 2032. Archrock Partners Finance Corp. is also included in this co-issuer arrangement.
Purpose of the Offering
The proceeds from this significant offering will be strategically directed towards the acquisition of Total Operations and Production Services, LLC. This acquisition is part of Archrock's ongoing plan to enhance its operational capabilities and service offerings within the natural gas industry. Additionally, part of the net proceeds will go towards a tender offer aimed at purchasing up to $200 million of existing senior unsecured notes due 2027, helping streamline Archrock's capital structure.
According to company officials, remaining funds will be allocated for various general corporate purposes, which may include reducing existing debt, particularly focusing on the company's revolving credit facility.
Compliance and Offering Details
The senior notes have not undergone registration under the Securities Act of 1933 and, unless registered, they cannot be offered or sold within the United States, except in reliance on specific exemptions. The notes were exclusively offered to qualified institutional buyers under Rule 144A and to non-U.S. persons in accordance with Regulation S.
About Archrock
Archrock stands as a leader in the energy infrastructure sector focusing primarily on midstream natural gas compression. The company is committed to enabling its clients to produce, compress, and transport natural gas efficiently and safely. Based in Houston, Archrock has developed a solid reputation in the U.S. energy market, providing essential services to operators in the oil and natural gas sectors and supplying aftermarket services for compression equipment.
Archrock Partners and Market Position
Archrock Partners specializes in delivering natural gas compression services, solidifying its position within the highly competitive oil and gas marketplace in the U.S. Archrock retains full ownership over both the limited and general partnership interests in Archrock Partners, ensuring a streamlined operational synergy between the two entities.
Commitment to Sustainability
Archrock operates with a clear mission: to lead the way for a cleaner, more sustainable future through energy solutions. Their motto, WE POWER A CLEANER AMERICA, encapsulates the company's dedication to environmentally responsible practices in the energy sector.
Investor Relations and Support
Those looking for more information on Archrock's operational performance and future outlook can contact the investor relations department. For inquiries, Megan Repine, VP of Investor Relations, is available via phone or email. Investors are invited to reach out for further clarity on how Archrock is positioned for growth in the changing energy landscape.
Frequently Asked Questions
What is the primary purpose of the $700 million offering?
The primary purpose is to fund the acquisition of Total Operations and Production Services, LLC, and to facilitate other corporate needs, including debt reduction.
What is the interest rate and maturity for the senior notes?
The senior notes carry an interest rate of 6.625% and are set to mature in 2032.
Who issued the senior notes?
The senior notes were issued by Archrock Partners, L.P. and Archrock Partners Finance Corp., both wholly-owned subsidiaries of Archrock.
Are the senior notes available for purchase in the U.S.?
No, unless they are registered under the Securities Act, they cannot be offered or sold in the U.S. except through specific exemptions.
Who can I contact for more information about Archrock?
For investor inquiries, you can contact Megan Repine, VP of Investor Relations at 281-836-8360 or via email at investor.relations@archrock.com.
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