Global Infrastructure Partners To Sell Strategic Interest In Access Midstream Partners To Williams For $1.82 Billion In Cash
Access Midstream Partners To Concurrently Acquire Remaining Chesapeake Energy Corporation Midstream Assets For $2.16 Billion In Cash
Global Infrastructure Partners And Williams To Commit Up To $1.16 Billion Of New Equity Funding In Support Of Access Midstream Partners' Acquisition Of Chesapeake Energy Corporation Midstream Assets
NEW YORK, Dec. 11, 2012 /PRNewswire/ -- Global Infrastructure Partners (GIP), a leading independent global infrastructure investor, announced today that Global Infrastructure Partners I (GIP I) will sell 50% of the Access Midstream Partners general partner (GP) and 34.5 million Access Midstream Partners, LP (NYSE: ACMP) subordinated units to Williams (NYSE: WMB) for $1.82 billion in cash, representing all of GIP I's remaining ownership in Access Midstream Partners. Citi acted as exclusive financial advisor to GIP in connection with the sale of its GIP I interests to Williams.
Following the transaction, GIP's second fund, Global Infrastructure Partners II (GIP II), will continue to control 50% of the GP and a substantial number of Access units. GIP believes that Williams' unparalleled midstream experience will complement GIP's strong strategic and financial sponsorship as Access continues to capitalize on its best-in-class business model.
Concurrent with this transaction, Access today announced that it has agreed to acquire Chesapeake Midstream Operating, LLC (CMO) from Chesapeake Energy Corporation (NYSE: CHK) for $2.16 billion in cash. The CMO acquisition is a transformational opportunity for Access and will create the leading gathering and processing growth platform in North America.
GIP and Williams have agreed to purchase up to $1.16 billion in equity securities to support the transaction including $350 million of pay in kind equity securities thereby demonstrating their substantial commitment to the Partnership's long-term success.
Following the transactions, Access will become the largest gathering and processing MLP as measured by invested capital and throughput volume and have a substantially diversified portfolio with strategic positions in virtually every cost advantaged basin in the country. Williams' investment alongside GIP is a strong endorsement of this market position and future growth potential.
Matthew Harris, the GIP Partner leading the transaction commented, "Access has a proven business model and an accomplished management team. We are very excited to be forming a strategic partnership with Williams and believe today's announcements will provide a strong foundation for further growth in the years to come."
About Global Infrastructure Partners
Global Infrastructure Partners ("GIP") is an independent infrastructure fund that invests worldwide in infrastructure assets and business in both OECD and select emerging market countries. GIP targets investments in single assets, and portfolios of assets and companies in power and utilities, natural resources infrastructure, air transport infrastructure, seaports, freight railroad, water distribution and treatment and waste management. GIP has offices in New York and London, with an affiliate in Sydney and portfolio company operations headquarters in Stamford, Connecticut. For more information, visit www.global-infra.com
SOURCE Global Infrastructure Partners