[Context: On August 29, Tailwater Capital-backed Silver Creek Midstream announced the acquisition of Powder River Basin assets for $300m from Genesis Energy (NYSE: GEL). Further details and related links are below.]
Silver Creek Midstream | Tailwater Capital
Genesis Energy, L.P. Enters Into Agreement to Sell Powder River Basin Midstream Assets and Amends Revolving Credit Facility
HOUSTON–August 29, 2018 –(BUSINESS WIRE)–Genesis Energy, L.P. (NYSE: GEL) announced today that an affiliate of Silver Creek Midstream, LLC has exercised its option to acquire and Genesis has signed a definitive agreement to sell its Powder River Basin Midstream Assets for approximately $300 million in net cash proceeds. Proceeds from the sale will be used by Genesis to reduce the balance outstanding under its revolving credit facility.
The Powder River Basin Midstream Assets include Genesis’ Powder River Basin Pipeline along with the associated crude oil gathering system and rail facility.
In conjunction with the transaction, Genesis executed an amendment to its existing revolving credit facility, which among other things, sets the bank leverage ratio to 5.50x throughout the remaining term of the facility, currently May 8th 2022.
The sale is subject to customary closing conditions, including obtaining regulatory approvals. The transaction is expected to close in the third quarter of 2018.
Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis’ operations include offshore pipeline transportation, sodium minerals and sulfur services, onshore facilities and pipeline transportation and marine transportation. Genesis’ operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida, Wyoming and the Gulf of Mexico.