DALLAS--(BUSINESS WIRE)--Blue Racer Midstream, LLC (“Blue Racer”) and its wholly owned subsidiary Blue Racer Finance Corp. today announced the pricing of the previously announced offering (the “Notes Offering”) of their senior notes due 2025 (the “senior notes”), which was upsized to $600 million in aggregate principal amount from the originally proposed $550 million offering. The senior notes, which priced at par, will mature on December 15, 2025 and will pay an annual interest rate of 7.625%.
The Notes Offering is expected to close on December 23, 2020, subject to customary closing conditions. Blue Racer intends to use the net proceeds from the sale of the senior notes and borrowings under its revolving credit facility to fund its obligations under the separately announced tender offer (the “Tender Offer”) for any and all of its outstanding 6.125% senior notes due 2022, including fees and expenses in connection therewith, or to redeem any of the 6.125% senior notes due 2022 that remain outstanding thereafter. The Notes Offering is not conditioned on the consummation of the Tender Offer. The Tender Offer is conditioned on, among other things, the consummation of the Notes Offering.
The senior notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. This announcement shall not constitute an offer to sell or a solicitation of an offer to buy any of the senior notes, except as required by law.
This press release may include “forward-looking statements.” All statements, other than statements of historical fact, included in this press release that address activities, events or developments that Blue Racer expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by Blue Racer based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement. Blue Racer undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after the issuance of this press release.