Permian Basin midstream company Kinetik Holdings has entered a $150 million agreement with PNC Bank to pay down outstanding borrowings on its term loan, decreasing the remaining balance to $1 billion, according to an April 3 press release.
The company and bank created a $150 million accounts receivable securitization facility, scheduled to mature in April 2025, with an ongoing renewal mechanism, according to a press release from Kinetik.
Accounts receivable securitization is a financing technique in which a company converts its accounts receivable, or outstanding invoices, into financial instruments that can be sold to investors, according to information on PNC’s website.
The initial base of $150 million will vary with the value Kinetik’s accounts receivable balance. The maturity of the term loan will extend to Dec. 8, 2026.
Kinetik is headquartered in Midland, Texas, with operations focused on transport of products from the Delaware Basin to the Gulf Coast.
Recommended Reading
Chord Juggles Closing $4B Enerplus Deal, Plans to Drill 4-mile Laterals
2024-05-10 - Chord Energy expects to close its Enerplus acquisition by the end of May but, for now, is focused on three-mile and, eventually, four-mile laterals in the Williston Basin.
Ohio Oil, Appalachia Gas Plays Ripe for Consolidation
2024-04-09 - With buyers “starved” for top-tier natural gas assets, Appalachia could become a dealmaking hotspot in the coming years. Operators, analysts and investors are also closely watching what comes out of the ground in the Ohio Utica oil fairway.
Chesapeake-Southwestern Deal Delayed Amid Feds Scrutiny of E&P M&A
2024-04-05 - The Federal Trade Commission asked Chesapeake and Southwestern for more information about their $7.4 billion merger — triggering an automatic 30-day waiting period as the agency intensifies scrutiny of E&P deals.
FTC Strikes Again: Diamondback’s $26B Endeavor Merger Delayed
2024-04-30 - Diamondback Energy, which was nearing the end of a regulatory review period of its merger with Endeavor Energy Resources, is the latest E&P to see a deal postponed by the Federal Trade Commission.
NuStar Energy Unitholders Approve Merger with Sunoco
2024-05-02 - The transaction is expected to close on or about May 3, in which NuStar Energy LP will merge with and into a merger subsidiary of Sunoco LP.