HOUSTON – – Crescent Midstream Intermediate Holdings, LLC announced today the successful completion of a $600 million debt capital raise and refinancing of existing debt. The financing, finalized on , comprises a $500 million seven-year Term Loan B and a $100 million five-year Revolving Credit Facility.
The credit facilities have received issue ratings of B+ from Standard & Poor’s and B1 from Moody’s, signaling a level of creditworthiness within the non-investment grade spectrum. Proceeds from the financing were used to refinance the company’s existing debt obligations, extending its financial runway and improving its capital structure.
Jerry Ashcroft, CEO of Crescent Midstream, stated that the outcome of the debt raise “exemplifies the business we have built over the past decade.” He further noted that the new facilities will “strengthen our credit profile, and provide access to fund growth capital in the institutional and bank markets as we execute on our backlog of accretive growth projects.” Ashcroft also expressed confidence in the company’s ability to generate “significant free cash flow while growing strategically and providing dividends to our equity holders.”
The financing was led by a consortium of banks including Royal Bank of Canada, JPMorgan Chase Bank, N.A., Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., and The Bank of Nova Scotia. Royal Bank of Canada also served as the Administrative Agent for the transaction. Legal counsel to Crescent Midstream was provided by Allen Overy Shearman Sterling US LLP.
Crescent Midstream operates a network of pipelines serving over 80 deepwater platforms in the Gulf of Mexico and Louisiana, transporting more than 500,000 barrels of crude oil per day. The company positions itself as a key intermediary between producers and consumers of crude oil, providing essential transportation and logistical services.
The debt raise comes at a time of ongoing investment in the energy sector, particularly in midstream infrastructure. Midstream companies like Crescent Midstream play a crucial role in the transportation and storage of oil and gas, and their financial health is closely watched by investors and industry observers. The successful refinancing suggests continued confidence in Crescent Midstream’s business model and its ability to navigate the evolving energy landscape.
The company’s focus on crude oil services in the Gulf of Mexico and Louisiana places it within a region experiencing both opportunities and challenges. While the Gulf of Mexico remains a significant source of oil production, it also faces increasing scrutiny regarding environmental sustainability and the transition to cleaner energy sources. Crescent Midstream’s recent announcement of an innovative carbon capture solution, highlighted in news from October and September 2024, suggests the company is actively addressing these challenges and exploring opportunities for diversification.
The debt capital raise and refinancing are expected to provide Crescent Midstream with greater financial flexibility to pursue its growth strategy, which includes executing on its backlog of accretive projects. The company’s ability to generate free cash flow and deliver dividends to shareholders will be key metrics for investors to watch in the coming quarters. The extended debt maturities also provide a buffer against potential economic headwinds or fluctuations in oil prices.
While the company did not disclose specific details regarding the terms of its existing debt, the refinancing indicates a favorable outcome in terms of interest rates and maturity dates. The B+ and B1 ratings from Standard & Poor’s and Moody’s, respectively, are considered speculative grade, but they represent an improvement in the company’s credit profile and demonstrate its ability to access capital markets.
Crescent Midstream’s sponsorship of the Well Done Foundation’s well plugging and restoration activities in Louisiana, as announced in April 2025, underscores its commitment to environmental responsibility and its engagement with local communities. This type of initiative can enhance the company’s reputation and build goodwill with stakeholders.
The company’s website, www.crescentmidstream.com, provides further information about its operations, values, and leadership team. Investors and industry professionals can access additional details about the company’s financial performance and strategic initiatives through its investor relations materials.
