KANSAS CITY, Mo.
Oct. 4, 2013
/PRNewswire/ -- Crestwood Midstream Partners LP (NYSE:CMLP) ("Crestwood Midstream") and Crestwood Holdings LLC ("Crestwood Holdings" and, together with Crestwood Midstream, "
") and Inergy, L.P. (NYSE: NRGY) ("Inergy L.P.") and Inergy Midstream, L.P. (NYSE: NRGM) ("Inergy Midstream" and, together with Inergy L.P., "Inergy") today announced that
unitholders have overwhelmingly voted to approve the proposed merger of
and Inergy. The combination will create a fully integrated midstream partnership with a total enterprise value of approximately
At a special meeting of unitholders held today, more than 99% of the votes cast by
unitholders were in favor of the merger of a subsidiary of Inergy Midstream with Crestwood Midstream, representing approximately 81% of
total outstanding units entitled to vote as of the record date of the special meeting. This transaction is expected to close on
Monday, October 7, 2013
, completing the final step in the previously announced merger process. Upon closing, the newly combined entity will be named Crestwood Midstream Partners LP and will trade under the ticker symbol CMLP on the New York Stock Exchange beginning on
October 8, 2013
. Additionally, Inergy L.P. will be renamed Crestwood Equity Partners LP and will trade on the New York Stock Exchange under the ticker symbol CEQP beginning on
October 8, 2013
"We are very pleased to receive such overwhelming support for this transaction," said
Robert G. Phillips
, Chairman, President and Chief Executive Officer of
and Inergy. "Our unitholders clearly recognize the significant value enhancement opportunities that stem from the creation of a fully integrated midstream MLP. We look forward to completing this merger and executing on our strategy to grow the partnership and increase distributable cash flow for our unitholders."
Under the terms of the merger agreement, the combination of Inergy and
is being effected through a series of transactions. In the first transaction, which closed on
June 19, 2013
, Crestwood Holdings acquired the general partner of Inergy L.P. for
in cash. Prior to the closing of this transaction, Inergy L.P. distributed to its unitholders all of the approximately 56.4 million common units that it owned in Inergy Midstream. Upon closing of this transaction, Crestwood Holdings owned the general partner, and thus control, of Inergy L.P.
In a second transaction, which also closed on
June 19, 2013
, Crestwood Gas Services Holdings LLC, a wholly owned subsidiary of Crestwood Holdings, contributed to Inergy L.P. 100% of its interest in Crestwood Gas Services GP LLC, the general partner of Crestwood Midstream that also owns 100% of the incentive distribution rights of Crestwood Midstream, in exchange for approximately 35.1 million common units and approximately 4.4 million subordinated units of Inergy L.P.
In the final transaction, Crestwood Midstream unitholders will receive 1.070 units of Inergy Midstream for each unit of Crestwood Midstream they own. Additionally, all Crestwood Midstream public unitholders other than Crestwood Holdings will receive a one-time cash payment at closing of
per unit. As noted, this transaction is expected to be completed on
October 7, 2013
About Crestwood Midstream Partners LP
is a growth-oriented, midstream master limited partnership which owns and operates predominately fee-based gathering, processing, treating and compression assets servicing natural gas producers in the Barnett Shale in north
, the Marcellus Shale in northern
, the Fayetteville Shale in northwest
, the Granite Wash in the
, the Avalon Shale/Bone Spring in southeastern
/Bossier Shale in western
. For more information about