Aris Water Holdings, LLC, a subsidiary of Aris Water Solutions, Inc., announced the pricing of an upsized offering of $500 million aggregate principal amount of 7.250% Senior Notes due 2030. The offering was initially launched at $400 million but was increased due to strong demand. The Notes will mature on April 1, 2030, and are expected to close on March 25, 2025.
The net proceeds from this offering will be used to redeem all of the outstanding 7.625% Senior Notes due 2026 at par, plus accrued interest. Additionally, the proceeds will repay all outstanding borrowings under the Issuer’s credit facility and be used for general corporate purposes. This refinancing extends the maturity of a significant portion of the company's debt and improves its liquidity position.
This strategic financial move is expected to enhance the company's capital structure by replacing higher-interest, shorter-term debt with longer-term notes at a favorable rate. The successful upsizing of the offering reflects investor confidence in Aris Water Solutions' financial health and future prospects.
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