Antero Midstream (AM) Update - May 27

Antero Midstream (AM) Update - May 27

Postby dan_s » Thu May 27, 2021 11:23 am

This is good news. Pushes their senior debt out to 2029 at a good interest rate. The fact that these notes will sell at par is a good sign.
Paying down their bank credit facility is also a nice improvement to the balance sheet.

Antero Midstream (AM) Prices Upsized Senior Unsecured Notes
Zacks Equity Research
Thu, May 27, 2021

Antero Midstream Corporation announced that it has priced $750 million in aggregate principal amount of senior unsecured notes.

The upsized notes, carrying an interest rate of 5.375% and likely to mature by 2029, are priced on par. The company announced that the offering is likely to close by Jun 8, after meeting the customary closing conditions.

Following the deduction of estimated costs along with initial purchasers' discounts, the midstream energy company is likely to receive net proceeds of roughly $742 million. The company is planning to allocate the offering’s net proceeds to financing the redemption of entire $650 million in aggregate principal amount, carrying an interest rate of 5.375%. The notes are scheduled to mature by 2024. The remaining of the net proceeds will likely get allocated toward repayment of borrowings under its credit facility.

Headquartered in Denver, CO, Antero Midstream is primarily involved in operating and developing assets in the Appalachian Basin that are being used for midstream gathering, compression, processing and fractionation. The company also provides services to Antero Resources Corporation's (AR) properties through its integrated water assets.
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Before you invest in AM (a C-Corp in our High Yield Income Portfolio) you should read our recent profile on Antero Resources (AR), which you can find under the Sweet 16 tab on our website. AM current annual dividend yield is 9.3% and I expect them to increase their quarterly dividends soon.
Dan Steffens
Energy Prospectus Group
dan_s
 
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Joined: Fri Apr 23, 2010 8:22 am

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