Inergy Midstream Closes Purchase of COLT Crude Oil Logistics Hub
Inergy Midstream, L.P. (NYSE: NRGM) (“Inergy Midstream”) and the owner of its general partner, Inergy, L.P. (NYSE: NRGY) (“Inergy”), announced today that Inergy Midstream has completed the previously announced acquisition of Rangeland Energy, LLC (“Rangeland”), the owner and operator of the COLT crude oil rail terminal, storage, and pipeline facilities (the “COLT Hub”) for approximately $425 million, subject to certain performance milestones and customary working capital adjustments. The COLT Hub acquisition is an expansion of Inergy Midstream's shale-focused infrastructure portfolio and a natural extension of Inergy's refinery and producer-services businesses. Additionally, the COLT Hub has a first-mover advantage in the Bakken and could lead to incremental crude oil and NGL investments.
Inergy Midstream also announced today that it has completed the long-term debt and equity financing associated with the COLT Hub acquisition with the private placement of $225 million of Inergy Midstream common units and $500 million in senior unsecured notes due 2020. The remaining net proceeds from these offerings were used to repay borrowings under the Inergy Midstream revolving credit facility.
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