HOUSTON, March 30, 2017 (GLOBE NEWSWIRE) -- Archrock Partners, L.P. (NASDAQ: APLP ) today announced that the partnership has closed on a new five-year $1.1 billion asset-based revolving credit facility (the “New Credit Facility”). The New Credit Facility will mature on March 30, 2022, except that if as of December 2, 2020 any portion of our existing Senior Notes due April 2021 are outstanding on such date, then the New Credit Facility shall instead mature on December 2, 2020. Proceeds from the New Credit Facility were used to repay in full borrowings under the partnership’s existing $825 million revolving credit facility and $150 million term loan which would have matured in May 2018 (collectively the “Old Credit Facility”). All commitments under the Old Credit Facility have been terminated.
“We are pleased to announce the closing of our new credit facility and appreciate the support of existing and new lenders,” said Brad Childers, Chairman, President and Chief Executive Officer of Archrock Partners’ managing general partner. “The new credit facility demonstrates support for Archrock Partners’ stable, fee-based, production related business and provides additional liquidity as we continue to pursue industry growth opportunities.”
Under the New Credit Facility the partnership’s maximum Total Leverage Ratio, as defined in the credit agreement, is 5.95:1.00 through the fourth quarter of 2017; 5.75:1.00 from the first quarter of 2018 through the fourth quarter of 2018; 5.50:1.00 in the first and second quarters of 2019, and 5.25:1.00 thereafter (except that the Total Leverage Ratio for any fiscal quarter ending after June 30, 2019 during which a Specified Acquisition (as defined in the credit agreement) occurs and the following two fiscal quarters shall instead not be greater than 5.50:1.00). The maximum Senior Secured Leverage Ratio, as defined in the credit agreement, is 3.50:1.00; and the minimum Interest Coverage Ratio, as defined in the credit agreement, is 2.50:1.00.
The syndicate of 18 banks is led by JPMorgan Chase, N.A. as Joint Lead Arranger, Joint Book Runner, and Administrative Agent; and Wells Fargo Securities, LLC, Bank of America N.A., Regions Bank, Royal Bank of Canada, The Toronto-Dominion Bank, and The Bank of Nova Scotia as Joint Lead Arrangers and Joint Book Runners.
About Archrock Partners
Archrock Partners, L.P., a master limited partnership, is the leading provider of natural gas contract compression services to customers throughout the United States. Archrock, Inc. (NYSE: AROC ) owns an equity interest in Archrock Partners, including all of the general partner interest. For more information, visit www.archrock.com .
Forward-Looking Statements
All statements in this release (and oral statements made regarding the subjects of this release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside Archrock Partners’ control, which could cause actual results to differ materially from such statements. Forward-looking information includes, but is not limited to: Archrock Partners’ financial and operational strategies and ability to successfully effect those strategies; Archrock Partners’ expectations regarding future commodity prices, demand for natural gas and economic and market conditions; Archrock Partners’ financial and operational outlook and ability to fulfill that outlook; and demand for Archrock Partners’ services.
While Archrock Partners believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. Among the factors that could cause results to differ materially from those indicated by such forward-looking statements are: local, regional and national economic conditions and the impact they may have on Archrock Partners and its customers; changes in tax laws that impact master limited partnerships; conditions in the oil and gas industry, including a sustained decrease in the level of supply or demand for oil or natural gas or a sustained decrease in the price of oil or natural gas; changes in safety, health, environmental and other regulations; the financial condition of Archrock Partners’ customers; the failure of any customer to perform its contractual obligations; and the performance of Archrock, Inc.
These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in Archrock Partners Annual Report on Form 10-K for the year ended December 31, 2016, and those set forth from time to time in Archrock Partners’ filings with the Securities and Exchange Commission, which are available at www.archrock.com . Except as required by law, Archrock Partners expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.
For information, contact: David Skipper, 281-836-8155
