Summit Midstream Announces $175 million Commitments for Double E Pipeline Project
Summit Midstream Partners announced Tuesday that its wholly-owned, indirect subsidiary, Summit Permian Transmission, has received $175 million of commitments from three leading commercial banks to finance the development of its Double E Pipeline Project.
The lenders have committed to provide senior secured credit facilities consisting of a $160 million delayed draw term loan facility and a $15 million working capital. The credit facilities are non-recourse to SMLP and mature seven years after the date of initial borrowing. SMLP expects to close and fund on the credit facilities shortly and will post a $15 million letter of credit under its corporate revolving credit facility to support back-end equity contributions, if any needed, upon first funding.
"I am pleased that we have secured financing commitments for substantially all of Summit's expected remaining capital obligations for the construction of Double E,” President, CEO and Chairman Heath Deneke said. “I would like to thank our bank group for their support of Double E and believe this is a testament to the quality of this world class project. This further advances the Double E project toward our expected in-service date during the fourth quarter of 2021. With our previously announced notice to proceed with construction from the FERC, we commenced construction activities to deliver this project in service in a safe manner, on time and under budget."
Kirkland & Ellis LLP is representing Summit Permian Transmission, LLC and Latham & Watkins LLP is representing the lenders on the financing.
The pipeline will transport gas from the Delaware Basin in the Permian shale in New Mexico and Texas to the Waha hub in West Texas.
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