Veresen Midstream has secured $650 million of new credit facilities which will be primarily used to fund Veresen Midstream's contracted capital projects under construction, including the Sunrise, Tower and Saturn processing facilities.
Veresen Midstream's $650 million of new credit facilities is comprised of:
New US$150 million Senior Secured Term Loan B, in addition to the existing US$575 million Term Loan B
Increase of $405 million in the Expansion Facility, which will now provide up to $1,680 million in borrowing capacity
Incremental $50 million of capacity within the Revolving Facility for a limit of up to $125 million
"Veresen Midstream's ability to secure additional borrowing capacity is an important step to delivering on its growth profile and reflects confidence in both the resource base as well as the relationship Veresen Midstream has with the Cutbank Ridge Partnership," said Don Althoff, President and CEO of Veresen. "With the addition of these credit facilities within Veresen Midstream, and our previously announced intention to divest of our power business, Veresen is now positioned to deliver $1.4 billion in contracted capital projects without the need to further access the capital markets."
Standard & Poor's Ratings Services and Moody's Investors Service have reaffirmed Veresen Midstream's credit ratings at BB- (stable) and Ba3 (stable), respectively. Veresen Midstream intends to maintain target leverage of 55% to 60%. Debt at the partnership level is non-recourse to Veresen.
Veresen Midstream is a jointly-owned limited partnership between Veresen and Kohlberg Kravis Roberts & Co. L.P. Veresen currently has an approximate 48% joint-control interest in Veresen Midstream, with the opportunity to increase its interest to 50% in the future.