Summit Midstream Corporation (NYSE: SMC) has entered into a Securities Purchase Agreement with an affiliate of Tailwater Capital LLC for a private placement of 1,351,351 shares of its common stock at a price of $31.08 per share, raising a total of $42 million. This transaction, which was unanimously approved by the Audit Committee of Summit's Board of Directors, is expected to strengthen the company's balance sheet and provide capital for strategic growth initiatives and general corporate purposes. The shares are subject to a six-month lock-up period and other customary terms. Following the transaction, Tailwater and its affiliates will own approximately 39% of Summit's outstanding equity, reflecting their increasing stake in the company. The issuance is seen as a vote of confidence in Summit's future prospects, particularly as the company aims to achieve a long-term leverage target of 3.5x. The company plans to use the proceeds from this equity issuance primarily for debt reduction and funding growth capital projects across its operating areas. The transaction is expected to enhance Summit's financial flexibility and support its ongoing growth strategy in the midstream energy sector.

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