Kingfisher Midstream, a subsidiary of Alta Mesa, expanded its senior credit facility from $200 million to $300 million in commitments from a syndicate of banks.
The funds will support the ongoing expansion of Kingfisher’s crude gathering and natural gas gathering and processing systems in the STACK play area of the Anadarko Basin in Oklahoma.
“The 50% increase in the credit facility, further strengthens our financial flexibility to fund our high-quality growth projects and reaffirms the confidence that our hand-picked bank group has in our financial and operational plans,” said Kingfisher CEO James Hackett.
According to a related 8-K filing, Wells Fargo served as the administrative agent and letter of credit issuer on the transaction.
As of May 30, 2018, KFM had $62.5 million in borrowings outstanding under the KFM credit facility and no outstanding letters of credit. The principal amounts borrowed are payable on the maturity date of May 30, 2023. KFM has a choice of borrowing in Eurodollars or at the reference rate, with such borrowings bearing interest, payable quarterly for reference rate loans and one month, two month, three month or six month periods for Eurodollar loans.
The amounts outstanding under the KFM credit facility are secured by first priority liens on substantially all of KFM’s and its subsidiaries’ real property and associated assets and all of the stock of KFM’s operating subsidiaries that are guarantors of the KFM credit facility.
