A subsidiary of Kinetik, a Permian-to-Gulf Coast midstream C-corporation operating in the Delaware Basin, entered into an agreement with PNC Bank for a $150 million accounts receivable securitization facility which will mature in April 2025 with an ongoing renewal mechanism.
The initial borrowing base of $150 million will vary with the value of the company’s accounts receivable balance. Borrowings under the facility will bear interest at one-month term SOFR plus 90 basis points.
Kinetik intends to use the net proceeds from the facility to repay a portion of the outstanding borrowings under its existing term loan credit facility, lowering the remaining balance to $1 billion. As a result, the maturity of the term loan will extend to Dec. 8, 2026.
Kinetik provides gathering, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water.
