HOUSTON - Summit Midstream (NYSE:SMLP) Partners, LP (NYSE: SMLP) revealed today that its subsidiaries, Summit Midstream Holdings, LLC and Summit Midstream Finance Corp., have initiated a tender offer to repurchase up to $215 million in principal of their 8.500% Senior Secured Second Lien Notes due 2026. This buyback, referred to as the Asset Sale Offer, is at par value, including accrued and unpaid interest until the purchase date.
The offer is in line with the terms of the indenture governing the Notes, which obligates the company to repurchase notes with excess proceeds from asset sales above $10 million, if such excess occurs 366 days post-sale or at an earlier date chosen by the issuers. The tender offer is set to expire at 5:00 p.m. New York City time on June 5, 2024, unless it is extended or terminated earlier at the issuers' discretion.
In the event the Notes tendered surpass the Asset Sale Offer Amount, the issuers will allocate purchases on a pro rata basis. Conversely, if the tendered amount falls short, the remaining funds may be used for other purposes, such as redeeming or repurchasing other outstanding notes, provided such actions are not prohibited by the indenture.
The Asset Sale Offer is being conducted according to an Offer to Purchase document, which details the full terms and conditions. The document is available upon request from the tender agent, D.F. King & Co., Inc. The press release emphasizes that this is not a solicitation for sales of Notes and advises note holders to read the Offer to Purchase carefully before making any decisions regarding the tender offer.
Summit Midstream Partners, LP, headquartered in Houston, Texas, specializes in midstream energy infrastructure assets in key unconventional resource basins across the continental United States. This press release includes forward-looking statements, and the company has indicated that actual future results may vary due to numerous factors.
This news is based on a press release statement from Summit Midstream Partners, LP.
InvestingPro Insights
Summit Midstream Partners, LP (NYSE: SMLP) has been making significant strides in the market, with InvestingPro data indicating a strong performance across various financial metrics. The company's market capitalization stands at a robust 365.82 million USD.
An impressive P/E ratio of 4.37 suggests that SMLP's earnings are robust relative to its share price, and this is further supported by the adjusted P/E ratio for the last twelve months as of Q1 2024, which is 4.58.
The company's financial health is underscored by a solid revenue growth of 20.5% over the last twelve months as of Q1 2024, indicating a strong upward trajectory in its financial performance. Additionally, SMLP's gross profit margin during this period was a healthy 54.2%, reflecting efficient operations and cost management.
InvestingPro Tips reveal that SMLP's stock is currently in overbought territory according to the RSI, which may interest traders looking for momentum in their investments. Moreover, the stock is trading near its 52-week high, with a price that is 98.02% of this peak, showcasing investor confidence in the company's prospects. Investors should note that SMLP does not pay a dividend, which could be a consideration for those seeking regular income streams from their investments.
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