Kayne Anderson-backed Canyon nets $50 mln

Houston-based midstream company Canyon Midstream Partners, which is backed by Kayne Anderson, has received a $50 million credit facility, (which can be expanded to $100 million). The capital will be used to finance Canyon’s expansion plans in the Permian Basin, the Eaglebine play in East Texas and the Tuscaloosa Marine Shale. Wells Fargo Securities was the sole lead arranger and bookrunner of the loan.


HOUSTON, Sept. 4, 2014 /PRNewswire/ — Canyon Midstream Partners, LLC (“Canyon”) announced today that it has secured a four-year, $50 million credit facility, which can be expanded to $100 million. Proceeds from the credit facility will fund Canyon’s expansion plans in the Permian Basin, the Eaglebine play in East Texas and the Tuscaloosa Marine Shale.

Wells Fargo Securities, LLC was the sole lead arranger and sole bookrunner of the credit facility, which closed on August 29, 2014. Wells Fargo Bank, N.A. (“Wells Fargo”) is the Administrative Agent under the credit facility, and Royal Bank of Canada (“RBC”) acted as Syndication Agent. Vinson & Elkins LLP served as counsel for Wells Fargo. Canyon was represented by Porter Hedges.

Michael Walsh, President and CEO of Canyon, said: “Canyon appreciates the opportunity to work with proven lenders to the midstream sector such as Wells Fargo and RBC. Their experience and understanding of Canyon’s expansion plans allowed this transaction to develop very quickly with attractive terms and flexibility for the next stage of our company’s growth. We believe the lending capabilities of Wells Fargo and RBC will enhance Canyon’s equity capital commitment from Kayne Anderson.”

Canyon is currently constructing the James Lake project in the Permian Basin. When completed in Q4 2014, this project will consist of a 105 MMcf/d cryogenic gas processing plant in Ector County, Texas; 60 miles of 12″ trunkline; and six field compressor stations providing low pressure gathering services in Ector, Andrews, Winkler, Martin, Dawson and Gaines counties, Texas. In addition, Canyon is developing the Foster Creek processing plant in Wilkinson County, Mississippi. When completed in Q4 2014, this project will be the first processing and gathering system developed to serve production from the Tuscaloosa Marine Shale. Canyon is also expanding the processing and gathering capacity on its Trinity River Midstream system in Houston and Madison counties, Texas to accommodate growing production from the Eaglebine play.

Canyon Midstream Partners, LLC is a Houston-based midstream company that seeks opportunities to create long-term value for its customers, investors and employees through operational improvements, organic and strategic growth and efficient capital investment. Canyon is backed by $300 million in equity commitments from Kayne Anderson Energy Funds, Canyon management and certain institutional investors. Canyon currently operates gathering and processing assets in the Permian Basin, East Texas and the Tuscaloosa Marine Shale. Inquiries regarding Canyon’s operations or midstream services should be directed to info@canyonmidstream.com. For more information, visit www.canyonmidstream.com.

Established in 1998, Kayne Anderson Energy Funds, with offices in Houston and Los Angeles, provides private equity financing primarily for high-growth oil and gas companies across North America. The firm has raised six dedicated energy private equity funds totaling over $4.3 billion in committed capital and invested in more than 90 portfolio companies. Kayne Anderson Energy Funds is a part of Kayne Anderson Capital Advisors, L.P., a leading independent alternative investment management firm founded in 1984 with nearly $30 billion in assets for institutional investors, family offices, and high net worth and retail clients in eight offices across the United States. Kayne Anderson Capital Advisors focuses on niche investing in upstream oil and gas companies, energy infrastructure, specialized real estate, middle market credit, growth private equity and distressed municipal opportunities. For more information, please visit www.kaynecapital.com.