Summit Midstream Partners, LP Announces Drop Down of All Operating Assets from Summit Investments and Reports Fourth Quarter and Full Year 2015 Financial Results
Feb 25, 2016
SMLP announces estimated $1.2 billion drop down of all operating assets from Summit Investments
Consideration for Drop Down Assets includes a $360.0 million Initial Payment and a Deferred Payment of $800.0 million to $900.0 million which will be funded in 2020
Transformational drop down enhances SMLP's growth profile with over 80% to 90% of the adjusted EBITDA contribution coming from the high growth Utica
Transaction is immediately accretive to distributable cash flow per unit
Transaction structure demonstrates substantial and continuing Sponsor support and will eliminate the need for any public market financing
SMLP has received commitments to upsize its revolving credit facility from $700.0 million to $1.25 billion and will use the facility to make the $360.0 million Initial Payment
SMLP reports 2015 adjusted EBITDA of $210.4 million and adjusted DCF of $154.3 million, including fourth quarter 2015 adjusted EBITDA of $53.3 million and adjusted DCF of $38.3 million
SMLP provides 2016 adjusted EBITDA guidance of $260.0 million to $290.0 million with expected distribution coverage ratio of 1.10x to 1.20x
Feb 25, 2016, 16:21 ET from Summit Midstream Partners, LP