Dallas-based midstream company Navigator Energy Services has secured financing to support expansion plans. The company announced Aug. 5 it has closed on a senior secured revolving credit facility in the amount of $125 million.
Navigator Energy 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.
Proceeds from the credit facility will be used for further expansion of the 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 (bpd) 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. Navigator Energy 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, one of the largest global private equity and infrastructure investment firms exclusively focused on energy.Tags: Navigator Energy Services