Williams (WMB), Chesapeake (CHK), Access Midstream (ACMP) Deal Lights Up Energy Sector
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This evening's M&A news involves another group of companies in the energy space, an area of that has been hot relative to overall sluggish M&A activity. Tonight's deal involves Chesapeake Energy Corporation (NYSE: CHK), Access Midstream Partners, L.P. (NYSE: ACMP), Global Infrastructure Partners (GIP), and Williams (NYSE: WMB).
In the deal, Williams agrees to acquire 50 percent interest in Access Midstream Partners GP, L.L.C. (Access GP) and approximately 25 percent of the limited partner units of Access Midstream Partners, LP for Approximately $2.4 billion.
ACMP will acquire most of Chesapeake's remaining gathering and processing assets for $2.16 Billion.
After Closings, Williams and Global Infrastructure Partners (GIP) will each own 50 percent interests in Access GP.
Finally, Williams and GIP commit to invest up to $1.16 Billion in newly issued ACMP Limited Partner Units
Upon closing of these transactions, ACMP will continue to be an independent, publicly traded master limited partnership. ACMP will continue as the operator of the assets and maintain its headquarters in Oklahoma City. ACMP will benefit from the continuity of ACMP’s existing, experienced leadership team and employees, including those associated with the assets ACMP is acquiring from Chesapeake.
Williams plans to fund the purchase price of its interests in Access GP and ACMP with a combination of equity and debt. In addition, Williams has entered into a backup financing commitment with respect to a $2.5 billion bridge facility with UBS Investment Bank, Barclays and Citigroup that would be available to fund the full cash purchase price for the acquisition.
In the deal, Williams agrees to acquire 50 percent interest in Access Midstream Partners GP, L.L.C. (Access GP) and approximately 25 percent of the limited partner units of Access Midstream Partners, LP for Approximately $2.4 billion.
ACMP will acquire most of Chesapeake's remaining gathering and processing assets for $2.16 Billion.
After Closings, Williams and Global Infrastructure Partners (GIP) will each own 50 percent interests in Access GP.
Finally, Williams and GIP commit to invest up to $1.16 Billion in newly issued ACMP Limited Partner Units
Upon closing of these transactions, ACMP will continue to be an independent, publicly traded master limited partnership. ACMP will continue as the operator of the assets and maintain its headquarters in Oklahoma City. ACMP will benefit from the continuity of ACMP’s existing, experienced leadership team and employees, including those associated with the assets ACMP is acquiring from Chesapeake.
Williams plans to fund the purchase price of its interests in Access GP and ACMP with a combination of equity and debt. In addition, Williams has entered into a backup financing commitment with respect to a $2.5 billion bridge facility with UBS Investment Bank, Barclays and Citigroup that would be available to fund the full cash purchase price for the acquisition.
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