Rice Energy to repay subsidiary revolver debt via equity investments

By Tali Rackner

Norfolk, Va., Dec. 21 – Rice Energy Inc. plans to repay all outstanding borrowings under Rice Midstream Holdings LLC’s revolving credit facility with the proceeds from preferred and common equity investments, according to a press release.

Rice Energy announced on Monday that it agreed to non-binding terms with an energy infrastructure fund to invest up to $500 million in preferred equity in Rice Midstream, a wholly owned subsidiary of Rice, and common equity in a new wholly owned subsidiary of Rice Midstream, "GP Holdings," which will be formed to hold the common units, subordinated units and incentive distribution rights in Rice Midstream Partners LP.

Rice Energy is engaged in the acquisition, exploration and development of natural gas, oil and NGL properties in the Marcellus Shale in southwestern Pennsylvania and the Utica Shale in southeastern Ohio. The remainder of the proceeds will be used to fund Rice’s 2016 development of the Marcellus Shale and Utica Shale wells.

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