EQM Midstream Partners, LP completed the acquisition of 100% stake in Hornet Midstream Holdings, LLC and 60% stake in Eureka Midstream Holdings, LLC from a fund managed by Morgan Stanley Infrastructure Inc.
April 09, 2019
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EQM Midstream Partners, LP (NYSE:EQM) signed a definitive agreement to acquire 100% stake in Hornet Midstream Holdings, LLC and 60% stake in Eureka Midstream Holdings, LLC from a fund managed by Morgan Stanley Infrastructure Inc. for $1 billion on March 14, 2019. Under the terms of the agreement, the consideration consists of approximately $860 million in cash and approximately $170 million of assumed debt. The transaction will be funded through cash proceeds from the issuance of $1.2 billion of newly issued Series A Convertible Preferred Units to lead investors consisting of funds managed by BlackRock, GSO Capital Partners, and Magnetar Capital. The transaction is subject to the customary regulatory and other closing conditions and expected to complete on or about April 15, 2019. The transaction is expected to be neutral to EQM distributable cash flow over the first twelve months and accretive thereafter.
Michael Jamieson, Dylan Tornay, Ben Exner of Citigroup Inc. and Carlos Rivero, Joel Foote, David Dahlson and Alex Busch of Guggenheim Securities, LLC acted as financial advisors and Ryan Maierson, Nick Dhesi, Tim Fenn, Larry Stein, Adam Kestenbaum, Joel Mack, Catherine Lee, Drew Levin and Jason Cruise of Latham & Watkins LLP acted as legal advisors to EQM Midstream and its parent, Equitrans Midstream Corporation. Citigroup Inc. and Guggenheim Securities, LLC are also acting as joint placement agents for the issuance of convertible preferred units. Barclays Capital Inc. acted as the financial advisor to Morgan Stanley Infrastructure Inc. Tudor, Pickering, Holt & Co. acted as financial advisor to Morgan Stanley Infrastructure. Peter Marshall, Matt Falcone, Jeannie Poland, H.T. Flanagan, Daryne Foote, John Lynch, Stephen Jacobson, Sean Becker, John Decker and Hill Wellford of Vinson & Elkins LLP acted as legal advisor to Morgan Stanley Infrastructure Partners. Morgan Stanley acted as financial advisor to Morgan Stanley Infrastructure Inc. Kirkland & Ellis advised BlackRock, GSO Capital Partners and Magnetar Capital, acting as lead purchasers.
EQM Midstream Partners, LP (NYSE:EQM) completed the acquisition of 100% stake in Hornet Midstream Holdings, LLC and 60% stake in Eureka Midstream Holdings, LLC from a fund managed by Morgan Stanley Infrastructure Inc. on April 10, 2019.
EQT Midstream Partners LP is a United States-based company, which operates as a growth-oriented limited partnership that operates, acquires, and develops midstream assets in the Appalachian Basin. The Company is the natural gas gatherer in the United States and holds the transmission footprint in the Appalachian Basin. The Company provides midstream services to its customers in Pennsylvania, West Virginia, and Ohio through its three primary assets: the gathering system, which delivers natural gas from wells and other receipt points to transmission pipelines; the transmission and storage system, which delivers natural gas to local demand users and long-haul interstate pipelines for access to demand markets; and the water service system, which consists of water pipelines, impoundment facilities, pumping stations, take point facilities, and measurement facilities that support well completion activities and collect flowback and produced water for recycling or disposal.
EQM Midstream Partners, LP completed the acquisition of 100% stake in Hornet Midstream Holdings, LLC and 60% stake in Eureka Midstream Holdings, LLC from a fund managed by Morgan Stanley Infrastructure Inc.