Antero Midstream Partners announced it has entered into a definitive agreement to acquire Antero Resources Corporation’s integrated water business for an aggregate $1.05 billion in a combination of cash, assumed debt and partnership common units. In addition, Antero Resources is entitled to receive two potential $125 million earn out payments at year-end 2019 and 2020 if certain fresh water volumetric delivery targets are met.
Antero said the purchase price will be funded by common units issued to Antero Resources, cash from Antero Midstream’s balance sheet and expanded credit facility as well as cash proceeds from common units issued in a private placement.
Antero said the partnership’s credit facility capacity will be increased by $500 million to a total of $1.5 billion in conjunction with the completion of this transaction. Pro-forma for the transaction, Antero Midstream would have had $439 million in debt and approximately $1.1 billion in availability under its revolving credit facility as of June 30, 2015.
According to a related 8-K filing dated September 23, 2013, Midstream operating entered into $1.0 billion revolving credit facility with a group of institutional lenders and Wells Fargo Bank, as administrative agent.
The acquisition is expected to close on September 23, 2015, subject to the satisfaction of customary closing conditions.