Navigator Energy Services (NES) 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. Wells Fargo Bank, National Association 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 National Association acted as syndication agent; and Citibank, N.A. acted as documentation agent.
Proceeds from the credit facility will be used for further expansion of the NES Big Spring Gateway System, a more than 400-mile crude oil gathering and transportation system serving the Midland Basin. The system, which is currently under construction, provides approximately 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 initial service on the Big Spring Gateway Pipeline system will begin in September 2015. NES is eligible to immediately begin borrowing under the facility.
“We are very pleased to be working with this prestigious group of lenders. This financing diversifies our sources of capital and is an important milestone as we continue to grow Navigator into a major crude oil gathering, transportation and storage company serving producers in the Permian Basin,” said Navigator CEO John O’Shea. “Together with our $250 million equity commitment from First Reserve, we have the financial strength to continue to grow and expand our footprint in the Permian’s Midland Basin.”
Headquartered in Dallas, Navigator provides oil and natural gas producers with comprehensive midstream services including crude oil and natural gas gathering, transportation, storage and natural gas compression and processing. Navigator and its affiliates are focused on domestic midstream opportunities in both developing and mature producing areas. Navigator is supported by an equity commitment from First Reserve. To learn more about Navigator, please visit www.navigatorenergyservices.com.
First Reserve is the largest global private equity and infrastructure investment firm exclusively focused on energy. With over 30 years of industry insight, investment expertise and operational excellence, the firm has cultivated an enduring network of global relationships and raised more than $30 billion of aggregate capital since inception.