Meritage Midstream Services II LLC entered into a $125 million revolving credit facility that will be used in the company’s Powder River Basin assets in Wyoming, the company said Feb. 4. The credit facility has a $50 million accordion feature, allowing Meritage to increase the credit commitment to $175 million, the company added.
The credit facility has a three-year term, the company said. The financing closed on Jan. 31, Meritage said. Deutsche Bank Trust Co. Americas was administrative agent, the company added. Deutsche Bank AG (NYSE: DB), Citibank N.A., Royal Bank of Canada (NYSE: RY) and Royal Bank of Scotland Plc (LON: RBS) were joint lead arrangers and lenders, the company said.
“We are pleased with the size of the commitment our group of banks made to Meritage and welcome them all to our new credit facility. The level of participation of each bank allowed us to move quickly with this financing and provides us with additional capital to execute our growth strategy. It also gives us a strong platform for future syndications,” said Meritage Midstream chairman and CEO Steven B. Huckaby.
He added, “this transaction will support the significant growth our subsidiaries are experiencing in the Powder River Basin. We are continuing to build out a large footprint of assets to provide oil and gas producers with comprehensive services that include natural gas gathering and processing; NGL transportation; crude oil gathering, terminal service for crude oil and frac sand; and crude oil marketing.”
Meritage Midstream Services is based in Golden, Colo. It provides oil and natural gas producers with midstream services.