USA Compression prices $750 million in senior notes due 2033

DALLAS - USA Compression Partners, LP (NYSE:USAC), a midstream energy company with a market capitalization of $3 billion and an impressive 8.75% dividend yield, announced Monday it has priced a private placement of $750 million in 6.250% senior unsecured notes due 2033. According to InvestingPro analysis, the company maintains a GOOD financial health score, suggesting solid debt management capabilities. The notes were priced at par and the offering is expected to close on September 24, 2025, subject to customary closing conditions.

The midstream energy infrastructure company expects to receive approximately $742.5 million in net proceeds after deducting initial purchasers’ discounts and estimated offering expenses. The partnership plans to use these proceeds, along with borrowings under its credit agreement, to redeem all of its 6.875% senior notes due 2027 and to cover fees and expenses related to the offering and redemption. With current total debt of $2.5 billion and a healthy current ratio of 1.27, this refinancing aligns with the company’s strategic financial management. Get deeper insights into USAC’s debt structure and financial health with a comprehensive Pro Research Report, available exclusively on InvestingPro.

Prior to funding the redemption, the company may temporarily apply the net proceeds to repay outstanding borrowings under its credit agreement.

The notes are being offered only to qualified institutional buyers under Rule 144A of the Securities Act and to non-U.S. persons outside the United States under Regulation S. The securities have not been registered under the Securities Act of 1933 and will not be listed on any securities exchange or automated quotation system.

This refinancing move comes as the company restructures its debt obligations with notes at a lower interest rate than the 2027 notes being redeemed. The information in this article is based on a press release statement from USA Compression Partners.

In other recent news, USA Compression Partners reported its second-quarter 2025 earnings, surpassing both earnings and revenue forecasts. The company achieved an earnings per share of $0.22, slightly above the expected $0.21, and reported revenue of $250.13 million, exceeding the projected $246.74 million. Additionally, USA Compression Partners announced plans to offer $750 million in senior unsecured notes due 2033, with the intention of using the proceeds to redeem existing notes due 2027 and cover related expenses. In another development, Texas Capital Securities initiated coverage on USA Compression Partners with a Hold rating and set a price target of $23.00. The firm highlighted the company’s leading distribution and significant presence in the contract compression sector. These developments reflect USA Compression Partners’ ongoing financial strategies and market positioning.

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