Williams Partners Completes Sale of Interests in the Geismar Olefins Facility to NOVA Chemicals for $2.1 Billion; Enters into...
July 06 2017 - 9:25AM
Business Wire
Williams Partners L.P. (NYSE: WPZ) announced today that it has
completed the sale of all of its membership interest in Williams
Olefins L.L.C., which owns an 88.46 percent undivided ownership
interest in the Geismar, Louisiana, olefins plant and associated
complex, to NOVA Chemicals for $2.1 billion in cash, subject to a
working capital adjustment.
Additionally, Williams Partners subsidiaries have entered into
long-term supply and transportation agreements with NOVA Chemicals
to provide feedstock to the Geismar olefins plant via Williams
Partners’ ethane pipeline system in the U.S. Gulf Coast. These
agreements will secure a meaningful long-term fee-based revenue
stream for the partnership.
“Completing this successful transaction represents another
important step in our natural gas-focused business strategy to
deliver predictable long-term growth as we reduce our
commodity-margin exposure,” said Alan Armstrong, chief executive
officer of Williams Partners’ general partner. “Around 97 percent
of our gross margins will now come from predictable fee-based
sources, including the previously announced new long-term supply
and transportation agreements with NOVA. We look forward to
supporting NOVA’s strategy in the Gulf Coast with our highly
reliable ethane pipeline system as part of this win-win transaction
and agreement for both companies.”
Williams Partners plans to use the cash proceeds from the
Williams Olefins transaction to pay off its $850 million term loan
and to fund a portion of the capital and investment expenditures
that are a part of the partnership’s extensive growth portfolio.
The Williams Companies, Inc. (NYSE: WMB) expects that for federal
tax purposes, any taxable gain generated from the transaction will
be sheltered by tax losses carried forward.
Morgan Stanley & Co. LLC acted as the lead financial adviser
to Williams Partners on the transaction. Centerview Partners LLC
acted as a co-adviser to Williams Partners on the transaction.
Gibson, Dunn & Crutcher LLP and Kean Miller LLP served as legal
advisers to Williams Partners on the transaction.
About Williams & Williams Partners
Williams (NYSE: WMB) is a premier provider of large-scale
infrastructure connecting U.S. natural gas and natural gas products
to growing demand for cleaner fuel and feedstocks. Headquartered in
Tulsa, Okla., Williams owns approximately 74 percent of Williams
Partners L.P. (NYSE: WPZ). Williams Partners is an
industry-leading, large-cap master limited partnership with
operations across the natural gas value chain including gathering,
processing and interstate transportation of natural gas and natural
gas liquids. With major positions in top U.S. supply basins,
Williams Partners owns and operates more than 33,000 miles of
pipelines system wide – including the nation’s largest volume and
fastest growing pipeline – providing natural gas for clean-power
generation, heating and industrial use. Williams Partners’
operations touch approximately 30 percent of U.S. natural gas.
www.williams.com
About NOVA Chemicals
NOVA Chemicals develops and manufactures chemicals and plastic
resins that make everyday life safer, healthier and easier. Our
employees work to ensure health, safety, security and environmental
stewardship through our commitment to sustainability and
Responsible Care®. NOVA Chemicals, headquartered in Calgary,
Alberta, Canada, is wholly-owned ultimately by Mubadala Investment
Company of the Emirate of Abu Dhabi, United Arab Emirates.
Portions of this document may constitute “forward-looking
statements” as defined by federal law. Although the company
believes any such statements are based on reasonable assumptions,
there is no assurance that actual outcomes will not be materially
different. Any such statements are made in reliance on the “safe
harbor” protections provided under the Private Securities Reform
Act of 1995. Additional information about issues that could lead to
material changes in performance is contained in the company’s
annual and quarterly reports filed with the Securities and Exchange
Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20170706005648/en/
Williams Partners L.P.Media Contact:Keith Isbell,
918-573-7308orInvestor Contact:Brett Krieg, 918-573-4614
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