EnLink refinances with $1.75 billion five-year revolver, gets $850 million three-year term loan

By Susanna Moon

Chicago, Dec. 12 – EnLink Midstream, LLC said has closed a $1.75 billion five-year revolving credit agreement to refinance two revolving credit facilities.

Also, EnLink Midstream Partners, LP obtained an $850 million three-year unsecured term loan, according to an announcement.

Interest on the term loan will be Libor plus 150 basis points.

Proceeds from the term loan were used to repay almost all of EnLink's revolving credit facility. Borrowings and letters of credit under the refinanced credit facility will be used for general company purposes, including repayment of debt under EnLink's revolving credit facilities and for funding of growth capital expenditures.

Bank of America Merrill Lynch is the lead arranger. Bank of America, NA is the administrative agent. BMO Capital Markets Corp., RBC Capital Markets, Citibank, NA and Wells Fargo Securities, LLC are the joint lead arrangers.

The term loan can be prepaid at any time in whole or in part without penalty.

The term loan contains substantially the same covenants as those contained in the refinanced credit facility.

“This refinancing gives us the flexibility to satisfy our senior notes maturity obligations in April 2019 without relying on the capital markets,” Michael J. Garberding, president and chief executive officer of EnLink, said in the press release.

“As we continue to execute on our highly efficient growth capital program, these financing vehicles not only align well with our long-term funding strategy, but also enhance EnLink's liquidity and demonstrate strong financial support from our banking partners.”

The refinanced credit facility is unsecured and allows the company to borrow up to $1.75 billion on a revolving credit basis and includes a $500 million letter-of-credit subfacility.

Pricing and fees are substantially similar to the current revolving credit facility.

EnLink is a Dallas-based midstream energy services provider.

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