SemGroup has announced it has closed on the sale of a 49 percent interest in Maurepas Pipeline to investment funds managed by Alinda Capital Partners for $350m.
Under the terms of the agreement, SemGroup has an option to acquire Alinda’s interest prior to the fifth anniversary of closing, after a 24-month non-call period. The call price is based on a predetermined fixed return on Alinda’s investment, including capital contributions.
SemGroup President and CEO Carlin Conner, said: “In addition to paying down debt and de-levering our balance sheet with a very efficient cost of capital transaction, we plan to reinvest some of the proceeds in high-return areas surrounding our footprint. Additionally, the terms of the transaction give us the ability to buy back Alinda’s interest in Maurepas, a cash flow-stable pipeline serving Gulf Coast refineries, at favourable terms.”
SemGroup will remain the majority owner and operator of the pipeline system, which consists of three separate transportation pipes serving refineries in the Gulf Coast region of Louisiana.
For more information visit: www.semgroup.com
26th October 2018
