HOUSTON - Summit Midstream Partners, LP (NYSE:SMLP) has initiated a tender offer to repurchase up to $19,331,000 of its 8.500% Senior Secured Second Lien Notes due 2026. The offer, a
Announced Today, will be conducted at par value, inclusive of accrued and unpaid interest up to the purchase date.
This buyback, termed the "Excess Cash Flow Offer," is in accordance with the indenture terms governing the notes. It is triggered by the company's excess cash flow for the fiscal year ending December 31, 2023, which surpassed the $5 million threshold.
The offer is set to expire at 5:00 p.m. New York City time on April 24, 2024, unless extended or terminated at the discretion of the issuers, subsidiaries of the Partnership.
If the tendered notes exceed the available amount, the notes will be purchased on a pro rata basis. Any residual funds from the offer may be allocated for purposes not prohibited by the indenture.
Summit Midstream Partners, operating in the midstream energy sector, focuses on infrastructure assets in key unconventional resource basins across the United States. Their services include gathering, processing, and transporting natural gas, crude oil, and produced water.
The offer to purchase is detailed in a document distributed to note holders, providing the full terms and conditions. The company has made it clear that this press release is for informational purposes and is neither an offer to purchase nor a solicitation of an offer to sell any notes.
Investors and note holders are advised to read the offer to purchase carefully before making any decisions regarding the tender offer. This initiative reflects the company's financial maneuvering and is based on a press release statement by Summit Midstream Partners, LP.
InvestingPro Insights
As Summit Midstream Partners, LP (NYSE:SMLP) announces its tender offer to repurchase senior secured notes, investors are closely monitoring the company's financial health and stock performance. According to real-time data from InvestingPro, SMLP's market capitalization stands at a robust $294.24 million, signaling a sizeable presence in the midstream energy sector.
Despite a challenging year, the company reported a substantial revenue growth of 24.1% over the last twelve months as of Q4 2023, which is a testament to its operational success and potential for future growth.
InvestingPro Tips highlight that SMLP has experienced a significant return over the last week, with a 46.01% price total return, which may attract investors looking for short-term gains. Additionally, the stock has seen a strong return over the last year, with a 75.45% price total return, indicating a solid performance despite market volatility.
Still, it is important to note that the company has not been profitable over the last twelve months, and its short-term obligations exceed its liquid assets, which could be a concern for risk-averse investors. For those interested in a more comprehensive analysis, there are 11 additional InvestingPro Tips for SMLP available, which can provide deeper insights into the company's financial state and stock performance.
Investors considering participating in the tender offer or investing in SMLP shares may find it useful to know that the stock is currently trading near its 52-week high, at 98.7% of this threshold. This information, along with the company's recent financial maneuvers, could influence investment decisions. To explore these metrics further and gain access to exclusive insights, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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