Howard Energy Partners Announces Launch of $600 Million Offering of Senior Notes

SAN ANTONIO--(BUSINESS WIRE)--Howard Midstream Energy Partners, LLC (the “Company”) today announced that it is commencing an offering (the “Offering”) of $600 million of senior notes due 2034 (the “2034 Notes”). The 2034 Notes will be issued in a private offering exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”).

The Company intends to use the net proceeds from the Offering to (i) fund the redemption of all of the $550.0 million aggregate principal amount of its outstanding 8.875% Senior Notes due 2028 issued on July 6, 2023 (the “2028 Notes”) in accordance with the indenture governing the 2028 Notes, (ii) fund the repayment of a portion of outstanding borrowings under the Company’s revolving credit facility and (iii) pay the premiums, fees and expenses incurred in connection with the Offering and the redemption of the 2028 Notes. Any excess proceeds will be used for general corporate purposes. Nothing in this press release constitutes a notice of redemption to the holders of the 2028 Notes.

The 2034 Notes and the related guarantees will be offered and sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A and to non-U.S. persons outside the United States in compliance with Regulation S, each under the Securities Act. The 2034 Notes and the guarantees have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.

RBC Capital Markets, CIBC Capital Markets, MUFG and TD Securities are acting as joint active bookrunners for the Offering.

This press release shall not constitute an offer to purchase or the solicitation of an offer to sell the 2034 Notes or any other securities, nor shall there be any offer or sale of any 2034 Notes or other securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any jurisdiction.

ABOUT HOWARD ENERGY PARTNERS

Headquartered in San Antonio, Texas, Howard Energy Partners is one of the nation’s largest private energy infrastructure companies, owning and operating a unique portfolio of assets in Texas, New Mexico, Pennsylvania, Oklahoma, and Mexico. Our diversified midstream platform spans the natural gas and liquids value chain and is strategically positioned to meet the world’s increasing demand for energy.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the federal securities laws, including with respect to the Company’s proposed offering of the 2034 Notes and the anticipated use of the net proceeds. Such forward-looking statements involve risks and uncertainties, many of which are beyond the control of the Company, that may cause actual events, results, or performance to differ materially from those indicated by such statements. These forward-looking statements are expressed in good faith, and the Company believes there is a reasonable basis for them. However, there can be no assurance that the events, results, or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and the Company is not under any obligation, and expressly disclaim any obligation, to update, alter, or otherwise revise any forward-looking statement, except as required by law.