Summit Midstream (NYSE:SMLP) Partners, LP (NYSE: SMLP), a Delaware limited partnership, has announced the completion of a significant financial transaction. On Monday, the company fulfilled its obligation to redeem all $209.5 million of its outstanding 12.00% Senior Notes due in 2026.
This move comes after a redemption notice was issued on June 7, 2024, by Summit Midstream Holdings, LLC and Summit Midstream Finance Corp., subsidiaries of SMLP.
The redemption process involved depositing the necessary funds with Regions Bank, the trustee for the 2026 Notes, to cover the principal amount outstanding at 101.000% of its value, along with accrued and unpaid interest up to the redemption date of June 22, 2024.
Following this payment, the indenture governing the 2026 Notes was satisfied and discharged, and the trustee acknowledged the fulfillment of these obligations.
As a result of this transaction, the Issuers and the guarantors of the 2026 Notes have been released from any remaining commitments under the indenture related to the 2026 Notes. This action signifies the company's strategic financial management and the conclusion of this particular debt obligation.
This report, based on a press release statement, does not constitute an offer to buy or a notice of redemption for the 2026 Notes or any other securities. Summit Midstream Partners, LP operates in the natural gas transmission sector and is headquartered in Houston, Texas. The completion of this redemption could reflect the company's efforts to manage its debt portfolio and strengthen its financial position.
In other recent news, Summit Midstream Partners has initiated a tender offer to repurchase up to $215 million of its 8.500% Senior Secured Second Lien Notes due 2026. This move, known as the Asset Sale Offer, aligns with the company's obligation to buy back notes with proceeds from asset sales exceeding $10 million.
On a different note, Summit Midstream has reported robust Q1 earnings, with a net income of $132.9 million and adjusted EBITDA of $70.1 million. The company has also completed the sale of its Northeast segment assets for approximately $700 million and is now focusing on mergers and acquisitions opportunities in the Rockies and Permian segments.
These are the latest developments for Summit Midstream, which has also been successful in securing a 75 million cubic feet per day commitment for the Double E pipeline open season. The company is expected to achieve a revised pro forma adjusted EBITDA guidance range of $170 million to $200 million. Summit Midstream's strategic shifts and strong Q1 performance signal a period of significant growth and transformation.
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