Azure Midstream Energy Refinances Credit Facility

New Funding Provides Tools to Pursue Strategic Commercial Deals As Current System Volume on Pace to Double by 2019

HOUSTON, TEXAS, August 31, 2018 – Azure Midstream Energy LLC (“Azure”) announced today it has closed on a first lien senior secured credit facility led by ABN AMRO and a second lien secured term loan facility led by Madava Financial. The proceeds from this new debt were used to pay off Azure’s existing credit facility while adding an upsized revolving credit facility and extending the maturity.

ABN AMRO acted as Sole Bookrunner, a Joint Lead Arranger and Administrative Agent with Capital One as a Joint Lead Arranger with respect to the first lien credit facility. Thompson & Knight LLP served as counsel for ABN AMRO and Latham & Watkins LLP served as counsel for Azure.

The new first lien credit facility enhances Azure’s ability to expand its system, as more and more producers seek to get their product to strengthening energy markets. Azure is on target to nearly double the volume on both its Holly and Shelby systems by 2019, currently signing up new gathering and processing agreements at a pace of approximately one per quarter.

“This was a seamless transaction, and we couldn’t be more pleased to partner with lenders who truly understand the vision we have to build Azure’s value,” said Mandy Bush, Azure’s Chief Financial Officer. “Coupled with the unwavering support we receive from our equity sponsors– Energy Spectrum and Tenaska—Azure is positioned better than ever for growth and success.”

“We are pleased to have played a leading role in this refinancing effort and have enjoyed working with this very talented management team. We consider Azure’s assets to be extremely strategic and in the core of what we consider to be one of the most prolific natural gas basins in North America,” said Casey Lowary, Managing Director with ABN AMRO.

“I have known the Azure and Energy Spectrum teams for a number of years and we are very excited to support the Company in this financing,” said Mark Green, President of Madava Financial. “We look forward to helping management attain its growth objectives going forward.”

“Whether they be strategic collaborations or commercial deals, we have financing for connecting systems and the expertise for laying pipe,” said Bush. “We are always interested in hearing from prospective partners about how we can work together to create value.”

About Azure Midstream Energy LLC

Azure is a midstream company with a focus on owning, operating, developing and acquiring midstream energy infrastructure in core producing areas in the United States. Azure currently provides natural gas gathering, compression, treating and processing services in northern Louisiana and east Texas in the prolific Haynesville and Bossier Shale formations, the liquids-rich Cotton Valley formation and the shallower producing sands in the Travis Peak formation.

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