CALGARY, ALBERTA–(Marketwired – Sept. 6, 2016) – Veresen Inc. (“Veresen”) (TSX:VSN) today announced that Veresen Midstream has secured $650 million of new credit facilities which will be primarily used to fund Veresen Midstream’s contracted capital projects under construction, including the Sunrise, Tower and Saturn processing facilities.
Veresen Midstream’s $650 million of new credit facilities is comprised of:
- New US$150 million Senior Secured Term Loan B, in addition to the existing US$575 million Term Loan B
- Increase of $405 million in the Expansion Facility, which will now provide up to $1,680 million in borrowing capacity
- Incremental $50 million of capacity within the Revolving Facility for a limit of up to $125 million
“Veresen Midstream’s ability to secure additional borrowing capacity is an important step to delivering on its growth profile and reflects confidence in both the resource base as well as the relationship Veresen Midstream has with the Cutbank Ridge Partnership,” said Don Althoff, President and CEO of Veresen. “With the addition of these credit facilities within Veresen Midstream, and our previously announced intention to divest of our power business, Veresen is now positioned to deliver $1.4 billion in contracted capital projects without the need to further access the capital markets.”
Standard & Poor’s Ratings Services and Moody’s Investors Service have reaffirmed Veresen Midstream’s credit ratings at BB- (stable) and Ba3 (stable), respectively. Veresen Midstream intends to maintain target leverage of 55% to 60%. Debt at the partnership level is non-recourse to Veresen.
Veresen Midstream is a jointly-owned limited partnership between Veresen and Kohlberg Kravis Roberts & Co. L.P. Veresen currently has an approximate 48% joint-control interest in Veresen Midstream, with the opportunity to increase its interest to 50% in the future.
About Veresen Inc.
Veresen is a publicly-traded dividend paying corporation based in Calgary, Alberta that owns and operates energy infrastructure assets across North America. Veresen is engaged in three principal businesses: a pipeline transportation business comprised of interests in the Alliance Pipeline, the Ruby Pipeline and the Alberta Ethane Gathering System; a midstream business which includes a partnership interest in Veresen Midstream Limited Partnership which assets owns in western Canada, and an ownership interest in Aux Sable, which owns a world-class natural gas liquids (NGL) extraction facility near Chicago, and other natural gas and NGL processing energy infrastructure; and a power business comprised of a portfolio of assets in Canada. Veresen is also developing Jordan Cove LNG, a six million tonne per annum natural gas liquefaction facility proposed to be constructed in Coos Bay, Oregon, and the associated Pacific Connector Gas Pipeline. In the normal course of business, Veresen regularly evaluates and pursues acquisition and development opportunities.
Veresen’s Common Shares, Cumulative Redeemable Preferred Shares, Series A, Cumulative Redeemable Preferred Shares, Series C, and Cumulative Redeemable Preferred Shares, Series E trade on the Toronto Stock Exchange under the symbols “VSN”, “VSN.PR.A”, “VSN.PR.C” and “VSN.PR.E”, respectively. For further information, please visit www.vereseninc.com.