Solaris Midstream Holdings, LLC, parent company to Solaris Water Midstream, LLC, has completed the issuance of $400 million in senior unsecured notes (the “Notes”) in a landmark issuance, pioneering the first sustainability-linked bond (SLB) in the produced water infrastructure industry. The Notes, which priced at par, will mature in 2026 and will pay an annual interest rate of 7.625%. The proceeds of the Notes were used to repay all borrowings under the revolving credit facility (the “Revolver”), to redeem all outstanding preferred equity and for general corporate purposes. Solaris Water also amended its Revolver to reflect a maturity date of April 1, 2025. The transaction simplifies the company’s capital structure, furthers its sustainability efforts, and adds liquidity and flexibility to support additional growth opportunities.
The Notes adhere to Solaris Water’s sustainability-linked bond framework, which is consistent with the voluntary Sustainability-Linked Bond Principles issued by the International Capital Market Association and provide for a long-term key performance indicator relating to Solaris Water’s large-scale produced water recycling. “We have been a pioneer in developing recycling infrastructure in the Permian Basin, and this sustainability-linked feature of the Notes recognizes Solaris Water’s long-term leadership in full-cycle produced water management," said Solaris Water President and Chief Operating Officer Amanda Brock. "Solaris Water continues to demonstrate our commitment to responsibly develop and operate our infrastructure to advance sustainability, while helping our customers achieve their environmental and social objectives.”
“We are excited to announce the closing of these transactions, which are transformative for Solaris Water on multiple levels and recognize our sustainability efforts to date, positioning us to deliver significant value to our customers, investors, shareholders and other stakeholders,” added Solaris Water Chief Executive Officer Bill Zartler. “We sincerely appreciate the support and trust of our lenders, customers and employees for the confidence they continue to show in Solaris Water. We believe our integrated produced water handling and recycling assets, blue-chip customer base and differentiated approach to full-cycle produced water management will continue to distinguish Solaris Water as oil and gas development in the Permian Basin progresses."