Brazos Midstream and its subsidiary, Brazos Delaware II, completed the issuance of a $800 million senior secured Term Loan B due February 2030. The company used the net proceeds from the Term loan, along with excess balance sheet cash, to repay its existing $830 million term loan B due May 2025. As part of the transaction, Brazos has also increased its currently undrawn super-priority revolving credit facility to $150 million from $90 million and extended the facility’s maturity date to 2028.
The transaction was underwritten and arranged by a Barclays-led bookrunner group that included Jefferies Finance, Bank of Oklahoma Securities and Cadence Bank, which served as structuring advisor.
“We appreciate the support of our lender base and are excited to complete this opportunistic transaction,” Brad Iles, CEO of Brazos, said. “Brazos has successfully transformed into a substantial, free cash flow generating business despite significant industry and macro challenges. This transformation is a direct result of our team’s financial discipline, the scale of our platform and the quality of our producer customer base.
“We are thankful for our majority owner, Morgan Stanley Infrastructure Partners, and their continued support. Together, we have positioned this business for prudent, long-term ownership and to capitalize on future growth in the Delaware Basin.”
