Sage Midstream will provide transportation, processing, fractionation, storage and marketing services for natural gas, NGL, crude oil, petrochemicals and refined products.
Unregistered 2.45% notes due 2018, 3.30% notes due 2020, 4.50% notes due 2025 and 5.80% notes due 2045 will be exchanged for the same amount of registered notes.
Porter said he expects to see more consolidation in the oil sector. "You will see increased energy M&A and I think you're going to see increased issuance throughout the sector," he said.
Spectra also priced 14 million common shares at $30 each, for expected proceeds of about $420 million; these proceeds will finance this private placement transaction.
The offer’s settlement date is scheduled for April 13. J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., DNB Markets Inc. and Scotia Capital (USA) Inc. are joint book-running managers.
The net proceeds and funds available under the credit facilities will finance the purchase price for the proposed acquisition of certain natural gas processing assets from Paramount Resources, Pembina said.
The acquisition is part of the Boston private equity firm's fifth Fund III platform investment. The firm focuses on investing in lower middle market energy services and equipment companies, the release said.
Antero Resources will own about 62% of the partnership's outstanding common and subordinated units. The offering is scheduled to close on March 30. Citigroup is the sole book-running manager.
The net proceeds will reduce debts partially incurred to fund the acquisition of certain AltaGas Ltd. infrastructure assets; this acquisition closed on February 29. The proceeds will also support general corporate purposes.
Net proceeds from this offering and from Shell Midstream’s general partner's proportionate capital contribution will repay outstanding borrowings under Shell Midstream’s revolving credit facilities and support general partnership purposes.
Some credit rating agencies view the exchange of new 1.5 lien secured notes for existing senior unsecured and second-lien secured notes as a distressed exchange and a limited default, Reuters said.
Investing public did not know Williams' management was also at the time in discussions with Energy Transfer Equity LP regarding a proposal from Energy Transfer to acquire all of Williams.