Williams Partners to Hold Private Placement for Four Corners Acquisition
Williams Partners L.P. on Friday announced it has entered into an agreement to sell approximately $350 million of common units and Class B units to new and existing qualified institutional buyers in a private placement.
The common and Class B units will be sold at respective discounts to an average trailing market price for common units and will be subject to possible adjustment for market conditions prior to closing.
Closing of the sale is conditioned on the closing of Williams Partners' planned $1.223 billion acquisition from Williams of the remaining 74.9 percent interest in Williams Four Corners LLC that the partnership does not own. The acquisition, subject to standard closing conditions, is expected to close in mid-December.
Williams Partners previously acquired a 25.1 percent interest in Four Corners from Williams for $360 million in June 2006. Four Corners owns certain natural gas gathering, processing and treating assets in the San Juan Basin in Colorado and New Mexico.
Williams Partners will use the net proceeds from this private placement to fund a portion of the cash consideration for the acquisition. Williams Partners plans to finance the balance of the total consideration amount of $1.223 billion through a mix of debt and equity, including the issuance of Class B units to Williams.
Williams Partners L.P. primarily gathers, transports and processes natural gas and fractionates and stores natural gas liquids. The general partner is Williams Partners GP LLC.
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Company: Williams Partners L.P. more info
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