Csi Compressco Lp (CCLP) 10-Q Quarterly Report November 2021

THE WOODLANDS, Texas (Nov. 10, 2021) / PRNewswire / - CSI Compressco LP (NASDAQ: CCLP) (“CSI” or “Partnership”)—along with CSI Compressco GP LLC, its general partner (the “General Partner”)—today announced the execution of agreements resulting in a series of transactions (collectively, the “Transactions”) that enable CSI to redeem all its outstanding Senior Unsecured Notes due 2022 (the “2022 Notes”). CSI is also releasing its third quarter 2021 results.

CSI will host a conference call to discuss third quarter results, tomorrow, November 11, 2021, at 10:30 a.m. Eastern Time. The phone number for the call is 1-866-374-8397. The conference call will also be available by live audio webcast and may be accessed through CSI’s website at www.csicompressco.com. An audio replay of the conference call will be available at 1-877-344-7529, conference number 10162088, for one week following the conference call and the archived webcast will be available through CSI’s website for thirty days following the conference call.

In connection with this release, CSI has posted private placement materials provided to the equity investors on its website. Please visit the Investor Relations tab for further information.

Transaction Summary

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CSI raises $57 million in private placements of common units

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CSI acquires the primary operating business of Spartan Energy Partners LP (“Spartan”) in an all equity transaction, with an expected increase in EBITDA of approximately 20%

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Announces redemption of all of its outstanding 2022 Notes, resulting in no bond maturities until 2025 after such redemption

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Reduces net leverage ratio on a pro forma basis from 6.8x to 5.5x as of September 30, 2021

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Improves liquidity from $35 million to $54 million on a pro forma basis as of September 30, 2021, a 54% increase

CSI raises $57 million in private placements of common units

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Equity of $57 million raised through private placements of the Partnership’s common units

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Investors include new 3^rd party institutional investors, existing unitholders (including Spartan), and management

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42.0 million units sold at $1.35 per unit and subject to a 90 day lock up

CSI acquires primary operating business of Spartan in an all equity transaction, with an expected increase in EBITDA of approximately 20%

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Includes over 400 gas treating, cooling and processing assets and customer contracts

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CSI issued 48,400,000 common units and assumed approximately $32.5 million in debt as consideration

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The General Partner agrees to eliminate Incentive Distribution Rights, increasing sponsor alignment

Announces redemption of all of its outstanding 2022 Notes, leaving no bond maturities until 2025 after such redemption

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Reduces bond interest expense by approximately 10%

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Issues $10 million of senior secured second lien notes at par

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Includes exchange of $2 million of 2022 Notes held by Spartan for common units

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Next bond maturity is the senior secured first lien notes due in April of 2025

Reduces net leverage and improves liquidity

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The Spartan operations and entities acquired in the Transactions are supported by an Asset Backed Loan (the “Spartan ABL”) that, pro forma for the Transactions, has a $70 million borrowing base and approximately $57.1 million drawn on a pro forma basis as of September 30, 2021

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The acquired Spartan entities will be designated unrestricted subsidiaries of the Partnership

The following information was filed by Csi Compressco Lp (CCLP) on Friday, November 12, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Csi Compressco Lp provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: CCLP
CIK: 1449488
Form Type: 10-Q Quarterly Report
Accession Number: 0001449488-21-000044
Submitted to the SEC: Fri Nov 12 2021 4:44:39 PM EST
Accepted by the SEC: Fri Nov 12 2021
Period: Thursday, September 30, 2021
Industry: Oil And Gas Field Services