What happened Units of EnLink Midstream (NYSE: ENLC) jumped as much as 10.6% by 3:15 p.m. EDT on Thursday. Fueling the MLP's rally was an update on its finances. So what EnLink Midstream secured a three-year, $250 million accounts receivable financing facility with PNC Bank. It will have an initial base of $225 million, which will vary based on the value of its accounts receivable balance. The MLP intends to use those proceeds to repay the outstanding borrowings on its $1.75 billion revolving credit facility, which stood at $75 million at the end of September. Image source: Getty Images. When combined with the company's free cash flow, that additional borrowing capacity gives it even more flexibility to repay its $850 million term loan when it matures at the end of next year. That's helping further ease the market's concern about its financial situation. Meanwhile, the MLP also reported that it generated significant free cash flow during the third quarter despite the continued turbulence in the energy market. As a result, it reduced its net debt by about $145 million during the quarter. Now what EnLink took several actions earlier this year to bolster its balance sheet and free cash flow amid the challenging conditions in the oil market, including cutting capital spending and its distribution. These moves are paying off as its business is generating lots of free cash, which is giving it the funds to pay down debt. Meanwhile, its improving financial profile is opening the door to low-cost financing options like this new financing facility. That's helping put the company's reset distribution -- which yields an attractive 12.8% even after today's rally -- on an even firmer long-term foundation. 10 stocks we like better than EnLink MidstreamWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and EnLink Midstream wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 20, 2020 Matthew DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source