Crestwood Midstream Partners LP (NYSE: CMLP) reports that it has priced $600 million aggregate principal amount of its 6.125 percent senior notes due 2022 issued in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended. The offering size was increased to $600 million from $500 million. The notes will be guaranteed on a senior unsecured basis by certain of Crestwood Midstream's current and future domestic subsidiaries.
Crestwood Midstream expects to use the net proceeds from this offering to fund a portion of the consideration payable by it in connection with its contemplated acquisition of Arrow Midstream Holdings LLC, a Delaware limited liability company, and to pay down outstanding borrowings under its revolving credit facility. The closing of this offering, coupled with the closing of the common unit offering on Oct. 23, and the common units to be issued directly to the sellers of Arrow concurrently with the Arrow acquisition, will complete the long-term financing of the Arrow acquisition.