Solaris Midstream Holdings, LLC Completes Landmark Offering of Sustainability-Linked Bonds

Solaris Midstream Holdings, LLC, parent company to Solaris Water Midstream, LLC (collectively, “Solaris Water”), 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."

Advisers

J.P. Morgan served as joint book-running manager and sole sustainability-linked bond structuring agent in the Notes offering. Wells Fargo served as joint book-running manager in the Notes offering and administrative agent in the Revolver amendment, with support in the Revolver from J.P. Morgan, Citizens Bank, Cadence Bank, Texas Capital Bank, Woodforest Bank and Iberia Bank. Gibson, Dunn & Crutcher LLP is serving as legal adviser to Solaris Water.

Forward-Looking Statements

This press release may include “forward-looking statements.” All statements, other than statements of historical fact, included in this press release that address activities, events or developments that Solaris Water expects, believes or anticipates will or may occur in the future are forward-looking statements, including statements relating to the benefits of the transaction, the company’s operations, prospects and strategy, and the impact of the company’s operations on its customers. These statements are based on certain assumptions made by Solaris Water based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement. Solaris Water undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after the issuance of this press release, except as required by law.

This press release is not an offer to sell or purchase, or a solicitation of an offer to sell or purchase, the notes, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any person to whom such an offer, solicitation or sale would be unlawful. The notes are only being offered to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The Notes have not been registered under the Securities Act or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

Information on any website referenced is not part of this release.