Crestwood Midstream Partners LP (NYSE: CMLP) has priced $700 million in aggregate principal amount of 6.25% unsecured senior notes due 2023 in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended.
The notes will be guaranteed on a senior unsecured basis by Crestwood Midstream’s existing and future subsidiaries that guarantee the company’s other series of senior notes outstanding and its revolving credit facility. The offering is expected to close on March 23.
Crestwood Midstream expects to use the net proceeds from this offering to fund the redemption of all outstanding 7.75% senior notes due 2019, to pay down borrowings outstanding under its revolving credit facility, and for general partnership purposes. In connection with this offering, Crestwood Midstream has notified the trustee of the 7.75% senior notes of the company's election to redeem all of the 7.75% senior notes outstanding on April 8, subject to completion of the notes offering.