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 should lead to incremental crude oil and NGL investments.
“The COLT Hub is an attractive asset that provides refiners with crucial access to Bakken-sourced crude oil and offers producers reliable takeaway capacity to premium demand markets,” said Bill Gautreaux, President of Inergy Services. “We are excited to acquire and grow this business.”
To fund the Rangeland acquisition, Inergy Midstream has entered into an agreement with institutional investors to sell $225 million of common units in a private placement concurrent with, and conditioned upon, the closing of the transaction. Institutions participating in the private placement are funds managed by Kayne Anderson Capital Advisors, L.P., FAMCO MLP, a division of Advisory Research, Inc., Tortoise Capital Advisors, LLC, and Magnetar Capital, among others. In addition, Inergy Midstream has obtained $225 million of committed unsecured debt financing from Citigroup Global Markets Inc. and J.P. Morgan.
Jefferies & Company, Inc. acted as sole financial advisor to Inergy Midstream in connection with the transaction.The transaction is expected to close in early December of 2012, subject to approval under the Hart-Scott-Rodino Act and other customary closing conditions. Inergy Midstream and Inergy will host a live conference call and internet webcast to discuss the acquisition and Inergy Midstream’s business and financial outlook at 10:30 a.m. Central Time, Monday, November 5, 2012. The call-in number for the conference call is 1-877-405-3427, and the conference name is Inergy Midstream, L.P. The live internet webcast and the replay can be accessed on Inergy’s website, www.inergylp.com. A digital recording of the call will be available for one week following the call by dialing 1-855-859-2056 and entering the pass code 65212125. About Inergy Midstream, L.P. Inergy Midstream, L.P., headquartered in Kansas City, Missouri, is a master limited partnership primarily engaged in the development and operation of natural gas and NGL storage and transportation assets. Inergy Midstream’s assets are located in the Northeast region of the United States.