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
Seadrill Sells Three Jackups for $338MM to Gulf Drilling International
2024-05-17 - Seadrill Ltd. is also selling its 50% equity interest in the joint venture that operates the rigs offshore Qatar.
Could Crescent, SilverBow Buy More in South Texas After $2.1B Deal?
2024-05-17 - The combination of Crescent Energy and SilverBow Resources will yield one of the Eagle Ford’s top producers—and the pro forma E&P could look to gobble up more acreage in South Texas after closing.
Permian Powerhouse: Apache Doubles Down on Core Assets After Callon Acquisition
2024-05-16 - Apache CEO John Christmann detailed plans for the Permian Basin and Suriname during the SUPER DUG Conference & Expo.
Crescent Energy to Buy Eagle Ford’s SilverBow for $2.1 Billion
2024-05-16 - Crescent Energy’s acquisition of SilverBow Resources will create the second largest Eagle Ford Shale E&P with production of about 250,000 boe/d, the companies said.
PE Investors Scoop Up Offshore Services Provider Acteon Group
2024-03-27 - Acteon Group, a U.K.-based subsea services provider serving customers in offshore oil, gas and renewables, was acquired by new private equity backers.