GOLDEN, Colo.--(BUSINESS WIRE)--Meritage Midstream Services II, LLC (“Meritage”) today announced that it has entered into a $125 million revolving credit facility with a $50 million accordion feature that allows Meritage to increase the credit commitment to $175 million. The credit facility has a three-year term and will be used to support Meritage Midstream’s growth strategy and expanding footprint of midstream assets in Wyoming’s Powder River Basin.
Four banks participated in the financing arrangement, which closed on January 31, 2014. Deutsche Bank Trust Company Americas acted as administrative agent. Deutsche Bank AG, Citibank, N.A., Royal Bank of Canada, and The Royal Bank of Scotland plc acted as joint lead arrangers and lenders.
"We are pleased with the size of the commitment our group of banks made to Meritage and welcome them all to our new credit facility. The level of participation of each bank allowed us to move quickly with this financing and provides us with additional capital to execute our growth strategy. It also gives us a strong platform for future syndications," said Meritage Midstream Chairman and CEO Steven B. Huckaby. "This transaction will support the significant growth our subsidiaries are experiencing in the Powder River Basin. We are continuing to build out a large footprint of assets to provide oil and gas producers with comprehensive services that include natural gas gathering and processing; NGL transportation; crude oil gathering; terminal service for crude oil and frac sand; and crude oil marketing.”
Meritage’s subsidiaries include Thunder Creek Gas Services, L.L.C.; Thunder Creek NGL Pipeline, LLC; Black Thunder Terminal, LLC; and Black Thunder Marketing, LLC.
About Meritage Midstream Services
Based in Golden, Colo., Meritage Midstream provides oil and gas producers with a full complement of midstream services. Capabilities include the gathering, compression, treating, processing, fractionation, transportation and marketing of natural gas, NGLs and condensate; crude oil gathering, blending, transportation and marketing; and transportation and handling for frac sand and produced water. The company’s senior management team has more than 200 years of collective experience in the midstream business. Meritage is backed by equity commitments from Riverstone Holdings LLC. Visit www.meritagemidstream.com for more information.
Meritage is moving its corporate headquarters to downtown Denver. Effective March 10, 2014, the new address will be 1331 17th Street, Suite 1100, Denver, CO 80202.