Business Context and Reporting Period
Company: Western Midstream Partners, LP (WES)
Filing Type: Form 8-K (Current Report)
Date of Report: September 13, 2019
Event: Creation of a direct financial obligation via a drawdown on a term credit facility.
Key Financial Metrics
- Debt Drawdown: $1.0 billion drawn under the Amended Term Credit Agreement.
- Debt Repayment: Proceeds used to repay borrowings under a $2.0 billion revolving credit facility.
- Remaining Capacity: No remaining borrowing capacity under the Amended Term Credit Agreement.
- Revenue/Profit/Cash Flow: The filing text does not provide a clear value for revenue, profit, cash flow, or margins.
Material Changes
The primary material change is a shift in debt structure. The subsidiary, Western Midstream Operating, LP, converted debt from a revolving credit facility to a term loan structure by utilizing the full $1.0 billion capacity of the Amended Term Credit Agreement (originally dated December 19, 2018, and amended July 1, 2019).
Outlook, Risks, and Management Commentary
Management Commentary: The filing states the transaction was executed to repay existing revolving borrowings. No forward-looking guidance or specific risk factors beyond the standard obligations of the credit agreement are detailed in this specific report.
Unusual Items: None reported in this filing.
Investor Verification Checklist
- Verify the interest rate and maturity terms of the Amended Term Credit Agreement referenced in the filing.
- Confirm the remaining availability under the $2.0 billion revolving credit facility post-repayment.
- Review the impact of this debt restructuring on the Partnership's leverage ratios and liquidity covenants.
- Check subsequent filings for any further amendments to the Term Credit Agreement.