Equitrans Midstream Corporation announced today that it has entered into definitive agreements with certain unitholders of EQGP Holdings, LP to acquire approximately 12.8 million common units representing limited partner interests in EQGP for US$20.00 per unit in cash, after which ETRN will own more than 95% of the outstanding EQGP Common Units.
Upon the closing of the Private Purchases, ETRN intends to exercise the Limited Call Right under EQGP’s partnership agreement to acquire all remaining EQGP Common Units not then owned by ETRN and its affiliates for at least the same cash price per unit that will be paid in the Private Purchases.
The Private Purchases are expected to close on or about December 31, 2018 and the Limited Call Right is expected to close in January 2019. Upon the completion of the Private Purchases and the Limited Call Right, EQGP will own 100% of the outstanding EQGP Common Units.
ETRN intends to use the cash proceeds from a newly issued Term Loan B to finance the Private Purchases and the purchases pursuant to the Limited Call Right and has secured committed financing in support of these purchases.
ETRN also announced that it has made a proposal to EQM Midstream Partners, LP for the exchange of its incentive distribution rights and the economic general partner interest in EQM for 95 million units in EQM and a non-economic general partner interest in EQM, subject to the closing of the Private Purchases and completion of the Limited Call Right. Final terms of the Proposed IDR Transaction are subject to negotiation with the board of directors of EQM’s general partner or its conflicts committee.
Upon completion of the Private Purchases, the Limited Call Right and the Proposed IDR Transaction, ETRN will have accomplished a full simplification of EQGP and EQM resulting in a projected 61% ownership of EQM.
Baker Botts represented ETRN in the transactions.
Read the article online at: https://www.worldpipelines.com/business-news/03122018/baker-botts-represents-equitrans-midstream-corporation/