Brazos Midstream and Old Ironsides Energy have completed their previously announced sale of the former’s Delaware Basin subsidiaries to a subsidiary of North Haven Infrastructure Partners II (NHIP II) for $1.75bn.
NHIP II is an investment fund managed by Morgan Stanley Infrastructure (“MSI”). The transaction included committed debt financing of $950 million ($900 million of term loan and $50 million of revolving credit facility), underwritten and arranged by Jefferies Finance LLC and Royal Bank of Canada.
Brazos now operates as a portfolio company of NHIP II and the management members remain in their current roles.
The recapitalization will be used to support Brazos’ growth strategies in the Delaware Basin, including the build-out of the Company’s third cryogenic natural gas processing plant, expected to be operational by the end of 2018.
This expansion will bring Brazos’ total operated processing capacity to approximately 460 million cubic feet per day (MMcf/d).
Jefferies LLC acted as the exclusive financial advisor to Brazos in connection with the transaction, and RBC Capital Markets acted as the exclusive financial advisor to MSI.
Thompson & Knight LLP served as legal counsel to Brazos, Morgan Stanley was represented by Latham & Watkins LLP, and Old Ironsides Energy was represented by Weil, Gotshal & Manges LLP.
Source: Company Press Release.