Navigator Energy Services (NES) has closed on a senior secured revolving credit facility in the amount of $125 million. NES is a crude-oil-focused midstream company funded by management and First Reserve's Energy Infrastructure Fund.
The credit facility is a $125 million senior secured leverage-based five-year revolving credit facility with an accordion feature of up to an additional $75 million.
Proceeds from the credit facility will be used for further expansion of the NES Big Spring Gateway System, a crude oil gathering and transportation system of more than 400 miles serving the Midland Basin. The system, which is under construction, provides 160,000 barrels per day of throughput capacity, up to 450,000 barrels of crude oil storage, and access to four markets via major interconnects. Navigator anticipates that initial service on the Big Spring Gateway Pipeline system will begin in September.
Wells Fargo Bank NA acted as administrative agent and collateral agent; Wells Fargo Securities LLC and Amegy Bank National Association acted as joint lead arrangers and joint bookrunners; Amegy Bank NA acted as syndication agent; and Citibank NA acted as documentation agent.