Two financial transactions have bumped American Midstream Partners LP’s (NYSE: AMID) borrowing capacity to as much as $1.1 billion and increased its available liquidity to $275 million.
American Midstream amended its revolving credit facility from $750 million to $900 million with the option of increasing its borrowing capacity to as much as $1.1 billion.
The amended credit facility, with a maturity date of Sept. 5, 2019, will bear interest at a rate equal to LIBOR plus 2% to 3.25% for LIBOR-based loans, and base rate plus 1% to 2.25% for base-rate loans.
At the same time, American Midstream released its $300 million in 8.5% senior unsecured notes from escrow. Those proceeds were used to pay off the revolving credit facility of JP Energy Partners LP (NYSE: JPEP) as well as pay down outstanding borrowings its own credit facility.
On a pro forma basis, as of Dec. 31, 2016, American Midstream had a leverage ratio of approximately 4.0x.
The amended credit facility was arranged by Merrill Lynch, Pierce, Fenner & Smith Inc. and Wells Fargo Securities LLC, who acted as joint lead arrangers and joint book managers. Bank of America NA acted as administrative agent, collateral agent and L/C issuer. Wells Fargo Bank NA acted as syndication agent. Bank of Montreal, Capital One NA, Citibank NA, Suntrust Bank, Natixis, New York Branch, ABN AMRO Capital USA LLC, Barclays Bank PLC, Royal Bank of Canada, Santander Bank NA and BNP Paribas acted as co-documentation agents.
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