Equitrans Midstream Corp. completed the acquisition of an additional 4.2% limited partner stake in EQGP Holdings LP from an investor group in private purchases, increasing its ownership of EQGP's outstanding common units to more than 95%.
The Pittsburgh-headquartered company paid $20 per unit to acquire the interest in EQGP from the investor group comprised of Goldman Sachs Group Inc. unit Goldman Sachs Asset Management LP, ZP Energy Fund LP, Neuberger Berman Investment Advisers LLC, Cushing Asset Management LP and Kayne Anderson Capital Advisors LP.
Concurrently, Equitrans Midstream exercised its limited call right, provided for in EQGP's partnership agreement, to buy all remaining EQGP units it does not already own at the same cash price. That transaction is expected to close Jan. 10.
After giving effect to the limited call right, EQGP will become an indirect, wholly owned subsidiary of Equitrans Midstream and will no longer be listing its common units on a public market, starting Jan. 22.
The transactions are part of the company's plans to simplify its midstream family of companies.
In addition, Equitrans Midstream said it closed a $600 million senior secured term loan B with a five-year tenor to fund the purchases. The company may also use the proceeds for other general corporate purposes.
Equitrans Midstream was formed from U.S. natural gas producer EQT Corp.'s separation of its natural gas upstream and midstream businesses in November 2018. It owns the general partner interest and more than 95% of the limited partner interest in EQGP Holdings, which owns the general partner interest, all the incentive distribution rights and a 17.9% limited partner stake in EQM Midstream Partners LP. Equitrans Midstream holds a 12.7% stake in EQM Midstream.