CorEnergy Infrastructure Trust Inc. agreed to acquire for $32.8 million Prudential Insurance Co. of America's 18.95% stake in Pinedale Liquids Gathering System.
Prudential Capital Group LP, which manages the asset, agreed to provide asset-level financing of $41 million, with a five-year term and a fixed rate. The loan will go toward paying off the existing Pinedale LP credit facility balance. CorEnergy will use its portion of the proceeds to fund its acquisition of Prudential's interest in Pinedale Liquids.
The transactions are expected to close by Dec. 31.
CorEnergy also said it was chosen for a utilities energy services contracting program at the U.S. Army's Fort Leonard Wood in Missouri. CorEnergy's Omega Pipeline provides natural gas distribution services at the post, and under the new program, it will provide comprehensive natural gas, electricity and water efficiency improvements.
The contract is expected to be signed in early 2018.
