Summit Midstream Partners, LP Announces Anticipated Closing Date of SMP Holdings' Term Loan Restructuring & Concurrent Full Settlement of DPPO
November 16, 2020 at 05:15 pm EST
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Summit Midstream Partners, LP announced that substantially all closing conditions to the previously announced consensual Term Loan restructuring transaction (the "TL Restructuring") involving its wholly owned, indirect subsidiary, Summit Midstream Partners Holdings, LLC ("SMP Holdings") have been satisfied. Lenders collectively holding 100% of the aggregate principal amount of claims, including the approximately $155.2 million in principal amount outstanding, under SMP Holdings' Term Loan (the "Term Loan") have consented to the TL Restructuring and, at closing, will receive their pro rata shares of consideration consisting of $26.5 million of cash and approximately 2.3 million SMLP common units currently pledged as collateral under the Term Loan (which have been adjusted to properly reflect the recent 1-for-15 reverse SMLP common unit split) in full satisfaction of SMP Holdings' outstanding obligations under the Term Loan. The TL Restructuring is expected to close on November 17, 2020. Upon closing of the TL Restructuring, SMLP will distribute the consideration to the Term Loan lenders and pay applicable expenses, after which the Term Loan will be fully discharged and the Term Loan lenders will waive their rights to any and all claims against SMP Holdings and its affiliates under the Term Loan and release the non-economic general partner interest in SMLP from SMP Holdings' collateral package under the Term Loan. In addition, the $180.75 million deferred purchase price obligation (the "DPPO") that SMLP owes to SMP Holdings will be fully settled concurrently with the closing of the TL Restructuring once SMLP makes an approximate $27.0 million cash payment to SMP Holdings. Following this payment, the DPPO will be fully repaid and cease to exist. SMP Holdings will utilize the approximate $27.0 million of cash received from SMLP to fund the cash consideration and certain expenses to be paid to the Term Loan lenders in conjunction with the closing of the TL Restructuring. SMLP will issue a press release with updated timing expectations if it deems these transactions no longer achievable on November 17, 2020.
Summit Midstream Partners, LP is a limited partnership focused on development, owning, and operating midstream energy infrastructure assets, primarily shale formations, in the continental United States. Its segments include Rockies, Permian, Northeast, Piceance and Barnett. It provides natural gas, crude oil and produced water gathering, processing and transportation services pursuant to primarily long-term, fee-based agreements with customers and counterparties in five unconventional resource basins: the Appalachian Basin, which includes the Marcellus shale formation in West Virginia; the Williston Basin, which includes the Bakken and Three Forks shale formations in North Dakota; the Denver-Julesburg Basin, which includes the Niobrara and Codell shale formations in Colorado and Wyoming; the Fort Worth Basin, which includes the Barnett Shale formation in Texas; and the Piceance Basin that includes the Mesaverde formation as well as the Mancos and Niobrara shale formations in Colorado.
SUMMIT MIDSTREAM PARTNERS, LP 
