Williams Partners (WPZ) Enters 6.975M Common Units Private Placement with Willams (WMB)

August 26, 2016 8:33 AM EDT

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The Williams Companies Inc. (NYSE: WMB) and Williams Partners L.P. (NYSE: WPZ) announced that Williams has agreed to purchase in a private placement from Williams Partners approximately 6.975 million common units representing limited partner interests in Williams Partners, for a total purchase price of approximately $250 million.

This private placement is a component of the plan referenced in the Second Quarter 2016 Financial Results news releases on Aug. 1, 2016, of Williams and Williams Partners intended to enhance value, strengthen their credit profiles and fund the development of a significant portfolio of fee-based growth projects at Williams Partners, while maintaining flexibility.

The price per common unit of $35.84 is equal to the average of the high and low trading prices of the Partnership’s common units on the New York Stock Exchange for each of the five trading days from August 19 to August 25, 2016, less a discount of 2.5% per common unit, which price per common unit was calculated using the same method and discount that initially will be used to determine the price of the common units to be issued pursuant to the Partnership’s anticipated distribution reinvestment plan.

Williams Partners plans to use the net proceeds from the private placement to repay amounts outstanding under the partnership’s credit facility and for general partnership purposes.

When the private placement is complete, Williams’ aggregate ownership interest in Williams Partners, including the general partner interest, will remain at approximately 60 percent.

The common units to be issued in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.

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