HOUSTON--(BUSINESS WIRE)--Crestwood Midstream Partners LP (“CMLP”), a wholly-owned subsidiary of
Crestwood Equity Partners LP (NYSE: CEQP), announced today that it has
priced $500 million in aggregate principal amount of 5.75% unsecured
Senior Notes due 2025 (the “Notes”) in a private offering that is exempt
from the registration requirements of the Securities Act of 1933, as
amended (the “Securities Act”). The Notes will be guaranteed on a senior
unsecured basis by all of CMLP’s subsidiaries that guarantee its
existing notes and the indebtedness under its revolving credit facility.
The Company expects to close the offering on March 14, 2017.
CMLP expects to use the net proceeds from this offering, together with
borrowings under its revolving credit facility, to fund two concurrent
cash tender offers (the “Tender Offers”) to purchase any and all of its
outstanding 6.0% Senior Notes due 2020 and 6.125% Senior Notes due 2022
(collectively, the “Tender Notes”) and for general partnership purposes.
The Tender Offers are being made pursuant to an Offer to Purchase dated
March 7, 2017. To the extent that the Tender Offers are not completed or
the net proceeds of this offering exceed the amount needed to fund the
Tender Offers, CMLP may use the remaining net proceeds from the offering
for general partnership purposes, which may include redeeming or
otherwise repurchasing Tender Notes, reducing borrowings under its
revolving credit facility, repaying other indebtedness and funding
working capital, capital expenditures and acquisitions.
The Notes and the related guarantees will be offered only to qualified
institutional buyers in reliance on the exemption from registration set
forth in Rule 144A under the Securities Act, and outside the United
States to non-U.S. persons in reliance on the exemption from
registration set forth in Regulation S under the Securities Act. The
Notes and the related guarantees have not been registered under the
Securities Act, or the securities laws of any state or other
jurisdiction, and may not be offered or sold in the United States
without registration or an applicable exemption from the Securities Act
and applicable state securities or blue sky laws.
This press release shall not constitute an offer to sell, or the
solicitation of an offer to buy, any securities, nor shall there be any
sales of the Notes in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction. This notice is being
issued pursuant to and in accordance with Rule 135(c) under the
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal securities law. Such forward-looking statements are
subject to a variety of known and unknown risks, uncertainties, and
other factors that are difficult to predict and many of which are beyond
management’s control. These risks and assumptions are described in
CMLP’s most recent annual report on Form 10-K and other reports that are
available from the United States Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on forward-looking
statements, which reflect management’s view only as of the date made. We
undertake no obligation to update any forward-looking statement, except
as otherwise required by law.
About Crestwood Midstream Partners LP
Houston, Texas, based CMLP is a limited partnership and wholly-owned
subsidiary of CEQP that owns and operates midstream businesses in
multiple unconventional shale resource plays across the United States.
CMLP is engaged in the gathering, processing, treating, compression,
storage and transportation of natural gas; storage, transportation,
terminalling, and marketing of NGLs; and gathering, storage,
terminalling and marketing of crude oil.