Quicksilver Snaps Ups Alliance Gathering & Treating Assets
Quicksilver Gas Services has completed the purchase of the Alliance midstream gathering and treating assets from Quicksilver Resources Inc. for a total preliminary adjusted purchase price of approximately $95 million, which is subject to final adjustment pursuant to the purchase agreement. The acquired assets consist of gathering systems and related compression facilities with an aggregate current capacity of 115 million cubic feet per day (MMcfd), and a plant with amine treating capacity of 180 MMcfd and dehydration treating capacity of 200 MMcfd to the gathered gas. The purchase was funded through draws on the company's senior secured revolving credit facility.
Separately, the underwriters of the company's recent offering of 4 million common units have exercised their option to purchase an additional 549,200 common units representing limited partner interests. The sale of the additional units is expected to close on January 7, 2010. Net proceeds from the sale will be used to repay outstanding borrowings under the company's credit facility.
The company has $320 million of total commitments on its credit facility. Following receipt of the net proceeds from the sale of additional units, the company expects to have approximately $210 million drawn on the credit facility.
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