Summit Midstream Partners, LP Announces Scheduled Closing Date for SMP Holdings Term Loan Restructuring and Concurrent Full Settlement of DPPO


HOUSTON, November 16, 2020 / PRNewswire / – Summit Midstream Partners, LP (NYSE: SMLP) today announced that substantially all of the closing conditions of the previously announced Consensual Term Loan Restructuring Transaction (the “TL Restructuring”) involving its indirect wholly owned subsidiary, Summit Midstream Partners Holdings, LLC (“SMP Holdings”) were satisfied. Lenders collectively holding 100% of the total principal amount of the receivables, including $ 155.2 million principal outstanding under the SMP Holdings Term Loan (the “Term Loan”) have agreed to the restructuring of TL and, upon closing, will receive their prorated matching units consisting of $ 26.5 million of cash and about 2.3 million regular units of SMLP currently pledged as collateral under the term loan (which have been adjusted to properly reflect the recent reverse split of SMLP units by 1 to 15) in full satisfaction of outstanding obligations of SMP Holdings under Loan.

The restructuring of TL is expected to be completed on November 17, 2020. Upon closing of the TL restructuring, SMLP will distribute the consideration to the term loan lenders and pay the applicable expenses, after which the term loan will be fully paid up and the term loan lenders will waive their rights to any claims against SMP. Holdings and its affiliates under the term loan and release the non-economic general partner interest in SMLP from the SMP Holdings collateral set under the term loan.

In addition, the $ 180.75 million the deferred purchase price obligation (the “DPPO”) that SMLP owes to SMP Holdings will be fully settled at the same time as the closing of the TL restructuring once SMLP has completed a $ 27.0 million cash payment to SMP Holdings. Following this payment, the DPPO will be fully refunded and will cease to exist. SMP Holdings will use the $ 27.0 million in cash received from SMLP to fund the cash consideration and certain expenses payable to term lenders in connection with the closing of the TL restructuring. SMLP will issue a press release with updated schedule expectations if it deems these transactions no longer feasible on November 17, 2020.

About Summit Midstream Partners, LP
SMLP is a value-driven limited partnership focused on the development, ownership and operation of mid-level energy infrastructure assets strategically located in unconventional resource basins, primarily shale formations, in the Mainland. the United States. SMLP provides natural gas, crude oil and produced water collection services under predominantly long-term, paid collection and processing agreements with customers and counterparties in six unconventional resource pools: (i) the Appalachian Basin, which includes the Utic and the Marcellus shale formations in Ohio and West Virginia; (ii) the Williston Basin, which includes the Bakken and Three Forks shale formations in North Dakota; (iii) the Denver-Julesburg basin, which includes the Niobrara and the Codell shale formations in Colorado and Wyoming; (iv) the Permian basin, which includes the Bone Spring and Wolfcamp formations in New Mexico; (v) the Fort worth pelvis, which includes the Barnett Shale training in Texas; and (vi) the Piceance basin, which includes the Mesaverde formation as well as the Mancos and Niobrara shale formations in Colorado. SMLP holds an interest in Double E Pipeline, LLC, which is developing a natural gas transportation infrastructure that will provide transportation service from multiple receiving points in the Delaware Basin to various delivery points in and around the Waha Hub in Texas. SMLP also owns an interest in Ohio Gathering, which operates an extensive natural gas gathering and condensate stabilization infrastructure in the Utica shale in Ohio. SMLP is headquartered at Houston, texas.

Forward-looking statements
This press release includes certain statements regarding expectations for the future that are forward-looking within the meaning of federal securities laws. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, such as the completion of the proposed TL Restructuring and the full settlement and termination of the Loan to term, and may contain the words “expect”, “intend”, “plan”, “anticipate”, “estimate”, “believe”, “will”, “will continue”, “will probably result”, and similar expressions, or future conditional verbs such as “may”, “will”, “should”, “should” and “could”. Forward-looking statements also contain known and unknown risks and uncertainties (many of which are difficult to predict and beyond the control of management) that may cause SMLP’s actual results in future periods to differ materially from anticipated results or projected. A complete list of specific material risks and uncertainties affecting SMLP is contained in its 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 9, 2020, Quarterly Report on Form 10-Q for the three-month period ended. . March 31, 2020 filed with the Securities Exchange Commission on May 8, 2020, Quarterly report on Form 10-Q for the three months ended June 30, 2020 filed with the Securities Exchange Commission on August 7, 2020 and quarterly report on Form 10-Q for the three months ended September 30, 2020 filed with the Securities Exchange Commission on November 6, 2020, each as modified and updated from time to time. All forward-looking statements contained in this press release are made as of the date of this press release, and SMLP assumes no obligation to update or revise any forward-looking statements to reflect new information or new events.

SMLP is actively engaged in various liability management transactions, including the restructuring of TL discussed above and the recently concluded cash take-over bids for its outstanding senior notes. SMLP intends to continue to assess other liability management initiatives, as well as potential asset sales or other asset disposals. There can be no assurance that such asset sales or other transfers will be completed. Other liability management initiatives may involve modifications to SMLP’s revolving credit facility and / or additional senior note redemptions through open market purchases, privately traded transactions, redemptions , additional takeover bids, exchange offers or otherwise.

SOURCE Summit Midstream Partners, LP

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