USA Compression Partners, LP agreed to sell $600.0 million of 6.750% senior unsecured notes due 2035 at par, generating approximately $592.1 million in net proceeds. The proceeds are designated for outstanding borrowings under its Credit agreement and offering-related fees and expenses, while existing and qualifying future subsidiaries will provide guarantees.
Key Highlights
- The notes carry a 6.750% rate and mature in 2035.
- USA Compression Partners expects the transaction to close on or about September 18, 2026.
- Existing subsidiaries and certain future restricted subsidiaries will jointly and severally guarantee the notes.
The notes are being sold at par, with approximately $592.1 million expected in net proceeds after discounts, commissions and estimated offering expenses.
Senior Notes Carry Subsidiary Guarantees
The initial purchasers intend to resell the securities privately to qualified institutional buyers in the United States and to non-U.S. Persons in transactions outside the United States.
Proceeds Target Credit Agreement Borrowings
USA Compression Partners (NYSE: USAC) plans to direct the net proceeds toward repayment of outstanding borrowings under its credit agreement and payment of fees and expenses connected with the offering. Affiliates of certain initial purchasers serve as lenders, agents, lead arrangers or bookrunners under that credit agreement, meaning those affiliates will receive part of the proceeds used for repayment. The purchase agreement includes customary representations, warranties, covenants, indemnification and contribution obligations.
FAQs
Q: What senior notes is USA Compression Partners issuing?
A: USA Compression Partners is issuing $600.0 million of 6.750% senior unsecured notes due 2035. The notes are being sold at par to initial purchasers.
Q: How will USAC use the senior notes proceeds?
A: USA Compression Partners expects approximately $592.1 million in net proceeds. The money will repay outstanding credit agreement borrowings and cover offering-related fees and expenses.
Q: When is the USA Compression Partners note offering expected to close?
A: The offering is expected to close on or about September 18, 2026, subject to customary closing conditions. This is the anticipated closing date for issuance and sale of the notes and guarantees.
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