Archrock Completes $700 Million Senior Notes Offering
Archrock, Inc. (NYSE: AROC) has successfully finalized its previously announced private offering, raising an impressive $700 million through a senior notes offering. This offering was carried out by Archrock Partners, L.P., a wholly-owned subsidiary of Archrock, featuring a 6.625% interest rate that is set to mature in 2032. Archrock Partners Finance Corp. is also part of this co-issuer arrangement.
Purpose of the Offering
The funds raised from this significant offering will be strategically allocated towards acquiring Total Operations and Production Services, LLC. This acquisition is in line with Archrock's ongoing strategy to enhance its operational capabilities and service offerings in the natural gas sector. Additionally, part of the net proceeds will be used for a tender offer aimed at repurchasing up to $200 million of existing senior unsecured notes due in 2027, which will help streamline Archrock's capital structure.
According to company officials, any remaining funds will be directed towards various general corporate purposes, which may include reducing existing debt, particularly in relation to the company's revolving credit facility.
Compliance and Offering Details
The senior notes have not been registered under the Securities Act of 1933 and, unless they are registered, they cannot be offered or sold within the United States, except under specific exemptions. The notes were offered exclusively to qualified institutional buyers under Rule 144A and to non-U.S. persons in accordance with Regulation S.
About Archrock
Archrock is a prominent player in the energy infrastructure sector, primarily focusing on midstream natural gas compression. The company is dedicated to helping its clients efficiently and safely produce, compress, and transport natural gas. Based in Houston, Archrock has built a strong reputation in the U.S. energy market, providing essential services to operators in the oil and natural gas industries and offering aftermarket services for compression equipment.
Archrock Partners and Market Position
Archrock Partners specializes in providing natural gas compression services, reinforcing its position in the highly competitive U.S. oil and gas marketplace. Archrock maintains full ownership of both the limited and general partnership interests in Archrock Partners, ensuring a seamless operational synergy between the two entities.
Commitment to Sustainability
Archrock operates with a clear mission: to pave the way for a cleaner, more sustainable future through energy solutions. Their motto, WE POWER A CLEANER AMERICA, reflects the company's commitment to environmentally responsible practices in the energy sector.
Investor Relations and Support
For those seeking more information about Archrock's operational performance and future outlook, the investor relations department is available for inquiries. Megan Repine, VP of Investor Relations, can be reached by phone or email. Investors are encouraged to reach out for further insights on how Archrock is positioned for growth in the evolving 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.
