EnLink Midstream Partners LP signed a three-year unsecured term loan agreement for $850 million, and general partner EnLink Midstream LLC entered into a revolving credit agreement to combine the two entities' revolvers into one $1.75 billion facility.
The partnership plans to use cash from the term loan to repay most of its existing revolver debt, according to a Dec. 12 news release. EnLink Midstream expects borrowings and letters of credit under the new unified and unsecured revolver to become available once the companies complete their simplification merger. The company plans to use its borrowings from the revolver for general corporate purposes, such as the repayment of all debt on the two revolvers to be combined.
Merrill Lynch Pierce Fenner & Smith Inc. acted as lead arranger, and Bank of America NA will be the administrative agent for both the term loan and unified revolver. BMO Capital Markets Corp., RBC Capital Markets, Citibank NA and Wells Fargo Securities LLC acted as joint lead arrangers.
Under the simplification deal terms, EnLink Midstream Partners' unit holders would receive 1.15 common units of EnLink Midstream for each unit held. The companies expect the deal to close in January 2019.