Summit Midstream Partners, LP has announced that its wholly-owned, indirect subsidiary, Summit Permian Transmission, LLC, has received US$175 million of commitments from three leading commercial banks to finance the development of its Double E Pipeline Project.
The lenders have committed to provide senior secured credit facilities consisting of a US$160 million delayed draw term loan facility and a US$15 million working capital facility (collectively, the ‘Credit Facilities’). The Credit Facilities are non-recourse to SMLP and mature seven years after the date of initial borrowing. SMLP expects to close and fund on the Credit Facilities shortly and will post a US$15 million letter of credit under its corporate revolving credit facility to support back-end equity contributions, if any needed, upon first funding.
Heath Deneke, President, Chief Executive Officer and Chairman, commented, "I am pleased that we have secured financing commitments for substantially all of Summit's expected remaining capital obligations for the construction of Double E. I would like to thank our bank group for their support of Double E and believe this is a testament to the quality of this world class project. This further advances the Double E project toward our expected in-service date during 4Q21. With our previously announced notice to proceed with construction from the FERC, we commenced construction activities to deliver this project in service in a safe manner, on time and under budget."
Kirkland & Ellis LLP is representing Summit Permian Transmission, LLC and Latham & Watkins LLP is representing the lenders on the financing.
For more news and technical articles from the oil and gas pipeline industry, read our latest issue of World Pipelines magazine.
The January 2021 issue kicks off the year with a regional report focusing on pipelines in the USA, in which Gordon Cope analyses the impact of the COVID-19 pandemic on the US oil and gas sector. The issue also includes articles on decarbonisation, inline inspection, corrosion prevention and offshore welding. Don’t miss the Pigging Q&A on p.31!
Read the article online at: https://www.worldpipelines.com/business-news/03022021/summit-midstream-partners-lp-receives-project-funding/
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