Apache Corporation and Kayne Anderson Acquisition Corporation (KAAC), a special purpose acquisition company (SPAC), which previously traded on the Nasdaq under the ticker symbols KAAC and KAACW, have announced the completion of the previously announced business combination to create Altus Midstream Company, currently the only publicly traded, pure-play, Permian Basin midstream C-corporation. The transaction was approved by KAAC shareholders 6 November 2018. Upon closing, KAAC changed its name to Altus Midstream Company. The Company’s Class A common stock and warrants began trading on the Nasdaq Monday, 12 November 2018, under the symbols ALTM and ALTMW, respectively.
“Altus Midstream is anchored by a world-class unconventional resource play in Alpine High and a premier sponsor in Apache Corporation, which currently owns approximately 79% of the company,” says Brian Freed, Altus Midstream CEO and president. “Our high-growth gathering and processing business, along with our options to purchase equity interests in five top-tier, Permian Basin pipeline projects, will drive market-leading growth at Altus Midstream for years to come. With no debt and a substantial cash position, we have the financial strength and access to a low cost of capital to fund our identified organic growth as well as pursue other attractive opportunities, such as crude and water gathering in Alpine High, third-party gathering and processing business, and mergers and acquisitions.”
Additionally, on Nov. 9, 2018, Altus Midstream entered into a credit agreement providing for an USD 800 million unsecured 5-year revolving credit facility, with initial capacity of USD 450 million, the eventual ability to upsize the facility to USD 1.5 billion, and two 1-year extension options. Pricing for the credit facility ranges between LIBOR + 1.05% to 1.425%.
“We have put in place a favourable revolving credit facility that provides Altus Midstream with flexible access to capital at attractive pricing and facilitates the ability to finance our growth plans,” says Ben Rodgers, Altus Midstream CFO.