WaterBridge Holdings entered into a $150 million revolving credit facility led by SunTrust Bank and Barclays with a syndicate of 13 financial institutions.
The company also completed a $1 billion term loan B priced at L+575 / 97.5 OID and matures in June 2026. WaterBridge used the net proceeds from the term loan B to repay in full borrowings outstanding under its existing debt facilities, fund the PDC transaction described below and fund organic growth.
“We are pleased to have the support of our new institutional partners as we continue to grow to meet our customers’ needs,” said Steven Jones, co-president and chief financial officer of WaterBridge. “The term loan B and our new credit facility provide long-term capital and liquidity that support our near-term requirements and can also scale with our company to fund future accretive growth opportunities.”
Following these transactions and the recent investment from GIC, Singapore’s sovereign wealth fund, WaterBridge and its affiliates have more than $500 million in liquidity and available capital, including a framework for incremental equity from Five Point Energy and GIC to pursue accretive M&A and organic growth opportunities.
WaterBridge also recently closed the acquisition of the Delaware Basin produced water infrastructure of PDC Energy. The assets are located in Reeves and Culberson counties and include 82 miles of pipeline and seven disposal wells with 180 mbpd of permitted capacity. Contemporaneously with the closing, WaterBridge and PDC entered into long-term produced water management, recycle and supply water agreements for PDC’s operated acreage within an extensive area of mutual interest.
With the addition of the PDC assets, WaterBridge owns and operates a network of 62 produced water disposal wells in the Southern Delaware Basin with 1,400 mbpd of permitted capacity connected by over 630 miles of pipelines.
Barclays served as financial advisor to WaterBridge in connection with the term loan B transaction. SunTrust Bank and Barclays served as financial advisors to WaterBridge in connection with the credit facility.
Five Point Energy is a private equity firm focused on the midstream energy sector.
WaterBridge Holdings is a portfolio company of Five Point Energy founded in January 2016 and headquartered in Houston. WaterBridge develops, owns and operates permanent, integrated water infrastructure networks to address the long-term produced water management requirements of its blue-chip customer base under long-term, fee-based contracts.
