Finance & Investing | General | Capital Markets | Private Equity Activity
Canyon Midstream Scores $50MM Credit Facility; Talks Projects
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Canyon Midstream Partners, LLC has secured a four-year, $50 million credit facility, which can be expanded to $100 million. Proceeds from the credit facility will fund Canyon's expansion plans in the Permian Basin, the Eaglebine play in East Texas and the Tuscaloosa Marine Shale.
Wells Fargo Securities, LLC was the sole lead arranger and sole bookrunner of the credit facility, which closed on August 29, 2014. Wells Fargo Bank, N.A. is the Administrative Agent under the credit facility, and Royal Bank of Canada acted as Syndication Agent. Vinson & Elkins LLP served as counsel for Wells Fargo. Canyon was represented by Porter Hedges.
Michael Walsh, President and CEO of Canyon, said: "Canyon appreciates the opportunity to work with proven lenders to the midstream sector such as Wells Fargo and RBC. Their experience and understanding of Canyon's expansion plans allowed this transaction to develop very quickly with attractive terms and flexibility for the next stage of our company's growth. We believe the lending capabilities of Wells Fargo and RBC will enhance Canyon's equity capital commitment from Kayne Anderson."
Canyon is currently constructing the James Lake project in the Permian Basin. When completed in Q4 2014, this project will consist of a 105 MMcf/d cryogenic gas processing plant in Ector County, Texas; 60 miles of 12" trunkline; and six field compressor stations providing low pressure gathering services in Ector, Andrews, Winkler, Martin, Dawson and Gaines counties, Texas. In addition, Canyon is developing the Foster Creek processing plant in Wilkinson County, Mississippi. When completed in Q4 2014, this project will be the first processing and gathering system developed to serve production from the Tuscaloosa Marine Shale. Canyon is also expanding the processing and gathering capacity on its Trinity River Midstream system in Houston and Madison counties, Texas to accommodate growing production from the Eaglebine play.
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