Kinetik Holdings secures $150M securitization facility

By Bobby Samwell • Monday, April 08 15:26 • Permanent Link

Kinetik Holdings Inc. (NYSE: KNTK) has just announced the execution of a new accounts receivable securitization facility with PNC Bank, National Association, valued at $150 million. This facility is set to mature in April 2025, with an ongoing renewal mechanism. The borrowing base of $150 million is subject to variation based on the company's accounts receivable balance. The borrowings under this facility will accrue interest at the one-month term SOFR rate plus 90 basis points.

The purpose of this new facility is to enable Kinetik to repay a portion of the outstanding borrowings under its existing term loan credit facility, thereby reducing the balance to $1.0 billion. Consequently, the maturity of the term loan will be extended to December 8, 2026.

Kinetik is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation that operates in the Delaware Basin. Headquartered in Midland, Texas, the company has a significant presence in Houston, Texas. Kinetik's services encompass gathering, transportation, compression, processing, and treating for companies involved in the production of natural gas, natural gas liquids, crude oil, and water. Following these announcements, the company's shares moved -0.5%, and are now trading at a price of $39.19. For more information, read the company's full 8-K submission here.

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