USA Compression Partners LP Secures New Credit Facility
Ticker: USAC · Form: 8-K · Filed: Mar 21, 2024 · CIK: 1522727
| Field | Detail |
|---|---|
| Company | Usa Compression Partners, LP (USAC) |
| Form Type | 8-K |
| Filed Date | Mar 21, 2024 |
| Risk Level | medium |
| Pages | 4 |
| Reading Time | 5 min |
| Key Dollar Amounts | $1,000,000,000 |
| Sentiment | neutral |
Sentiment: neutral
Topics: credit-facility, financing, debt
TL;DR
USA Compression Partners LP just inked a new credit deal, changing up their financing.
AI Summary
On March 18, 2024, USA Compression Partners, LP entered into a material definitive agreement related to a new credit facility. This agreement creates a direct financial obligation for the registrant, impacting its financial structure.
Why It Matters
This filing indicates a significant change in USA Compression Partners, LP's financing arrangements, which could affect its operational capacity and future investments.
Risk Assessment
Risk Level: medium — Entering into new credit facilities can introduce financial obligations and covenants that may impact the company's flexibility and profitability.
Key Players & Entities
- USA Compression Partners, LP (company) — Registrant
- March 18, 2024 (date) — Date of earliest event reported
- March 20, 2024 (date) — Date as of change
- 111 Congress Avenue, Suite 2400, Austin, Texas 78701 (address) — Principal executive offices
FAQ
What type of material definitive agreement did USA Compression Partners, LP enter into?
USA Compression Partners, LP entered into an agreement related to a new credit facility.
What is the date of the earliest event reported in this 8-K filing?
The date of the earliest event reported is March 18, 2024.
What is the principal executive office address for USA Compression Partners, LP?
The principal executive office address is 111 Congress Avenue, Suite 2400, Austin, Texas 78701.
Under which section of the Securities Exchange Act of 1934 is this Current Report filed?
This Current Report is filed pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
What is the Commission File Number for USA Compression Partners, LP?
The Commission File Number for USA Compression Partners, LP is 001-35779.
Filing Stats: 1,236 words · 5 min read · ~4 pages · Grade level 12.2 · Accepted 2024-03-20 19:52:02
Key Financial Figures
- $1,000,000,000 — with the Partnership, the "Issuers") of $1,000,000,000 in aggregate principal amount of the Is
Filing Documents
- usac-20240318.htm (8-K) — 32KB
- usac-indenture.htm (EX-4.1) — 1109KB
- 0001522727-24-000017.txt ( ) — 1440KB
- usac-20240318.xsd (EX-101.SCH) — 2KB
- usac-20240318_lab.xml (EX-101.LAB) — 22KB
- usac-20240318_pre.xml (EX-101.PRE) — 13KB
- usac-20240318_htm.xml (XML) — 3KB
01. Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement. Indenture On March 18, 2024, in connection with the previously announced offering (the "Offering") by USA Compression Partners, LP, a Delaware limited partnership (the "Partnership"), and its wholly-owned subsidiary, USA Compression Finance Corp., a Delaware corporation ("Finance Corp." and, together with the Partnership, the "Issuers") of $1,000,000,000 in aggregate principal amount of the Issuers' 7.125% senior notes due 2029 (the "Notes"), the Partnership entered into an Indenture (the "Indenture"), among the Issuers, the Guarantors (as defined below) and Computershare Trust Company, N.A., as trustee. The Notes are guaranteed (the "Guarantees"), jointly and severally, on a senior unsecured basis by the Partnership's existing subsidiaries (other than Finance Corp.) and each of its future restricted subsidiaries that either borrows under, or guarantees, the Partnership's senior secured asset-based revolving credit facility or guarantees certain of the Partnership's other indebtedness (collectively, the "Guarantors"). On March 18, 2024, the Notes were issued pursuant to the Indenture in a transaction exempt from the registration requirements under the Securities Act of 1933, as amended (the "Securities Act"). The Notes will be resold within the United States only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act, and outside the United States only to non-U.S. persons in reliance on Regulation S under the Securities Act. The Notes will accrue interest from March 18, 2024 at the rate of 7.125% per year. Interest on the Notes will be payable semi-annually in arrears on each March 15 and September 15, commencing on September 15, 2024. The net proceeds from the issuance and sale of the Notes and the Guarantees will be used to repay a portion of existing borrowings under the Partnership's asset-based revolving credit facility, redeem all of the Is
01. Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits. (d) Exhibits Exhibit Number Description 4.1 Indenture, dated as of March 18, 2024 by and among USA Compression Partners, LP, USA Compression Finance Corp., the subsidiary guarantors party thereto and Computershare Trust Company, N.A. 4.2 Form of 7.125% Senior Note due 2029 (included in Exhibit 4.1) 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. USA COMPRESSION PARTNERS, LP By: USA Compression GP, LLC, its General Partner Date: March 20, 2024 By: /s/ Christopher W. Porter Christopher W. Porter Vice President, General Counsel and Secretary