Tall Oak Midstream LLC’s subsidiaries, TOMPC LLC and TOM-STACK LLC, have each closed a $75 million credit facility with accordion features that allow for expansions to $100 million. The two credit facilities closed on June 23.
Formed in early 2014, Tall Oak is an independent midstream company focused on providing midstream services to oil and gas producers operating in the US Mid-Continent. The senior secured facilities bring Tall Oak’s total debt capacity to $200 million. Together with $700 million in prior private equity commitments from EnCap Flatrock Midstream and Tall Oak’s founders, total financing capacity for Tall Oak I and Tall Oak II now stands at $900 million.
The new TOMPC credit facility replaces the prior TOMPC facility, which was set to mature on Oct. 14. It will support planned expansions to Tall Oak’s natural gas gathering and processing system in the Central Northern Oklahoma Woodford (CNOW) play. The new TOM-STACK credit facility will help fund construction of Tall Oak’s crude oil gathering and transportation system in Oklahoma’s STACK play and the ongoing buildout of Tall Oak’s natural gas gathering and processing system in the STACK region. STACK is an acronym for the Sooner Trend, the Anadarko Basin and Oklahoma’s Canadian and Kingfisher counties. Both credit facilities mature on Sept. 30, 2016.
Six banks participated in each of the credit facilities, with Capital One NA acting as administrative agent and Capital One Securities serving as one of three joint lead arrangers alongside BBVA Compass and BancFirst. Amegy Bank National Association served as documentation agent. Additional participants are Bank of Oklahoma and KeyBank. Paul Hastings LLP provided legal counsel to Tall Oak, and Sidley Austin LLP advised the underwriters.