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Regency Energy plans $250 million revolver add-on with purchase of CDM
By Sara Rosenberg
New York, Dec. 12 - Regency Energy Partners LP is planning on getting a $250 million add-on to its revolving credit facility in connection with its acquisition of CDM Resource Management, Ltd., according to an 8-K filed with the Securities and Exchange Commission Wednesday.
The add-on commitment has been provided by one of the lead lenders under the company's existing revolver.
Regency is buying Houston-based CDM, a provider of natural gas compression services, in a transaction valued at $655 million, subject to certain adjustments and customary conditions at closing.
The company will draw $446 million under its expanded revolver to fund the transaction, will issue $205 million of deferred-pay limited partner units to the owners of CDM and will get a $4-million capital contribution by its general partner.
The acquisition is expected to close in January.
Regency is a Dallas-based midstream energy partnership.
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