HOUSTON, June 18, 2018 /PRNewswire/ -- American
Midstream Partners, LP (NYSE: AMID) ("AMID" or "Partnership") today
announced it has entered into a definitive agreement for the sale
of its marine products terminalling business (the "Marine Products
Terminals") to institutional investors advised by J.P. Morgan Asset
Management, for approximately $210
million in cash, subject to working capital adjustments. The
transaction is expected to close in the third quarter of 2018.
The divestiture of the Marine Products Terminals, including the
Harvey and Westwego terminals located in the Port of
New Orleans and the Brunswick terminal located in the Port of
Brunswick in Georgia, is a continuation of the
Partnership's previously announced non-core asset divestiture
program. The divestiture of the Marine Products Terminals further
simplifies AMID's business profile, providing the foundation to
further scale the Partnership's core strategic assets.
The transaction demonstrates the Partnership's continued ability
to execute on its strategy of generating internal capital from high
value non-core assets. The immediate use of these proceeds
will go toward reducing indebtedness under the Partnership's
revolving credit facility, as well as general corporate
purposes. Further debt reduction will provide the Partnership
with a more flexible capital structure, which will enable the
Partnership to further enhance liquidity as it continues to execute
on strategic growth initiatives.
As previously announced, on June 1,
2018, the Partnership and Southcross Energy Partners, L.P.
and Southcross Holdings LP (collectively, "Southcross") extended
the outside date for closing their previously announced combination
to June 15, 2018.
Notwithstanding the passing of this outside date, the Partnership,
along with Southcross, continues to work to close the combination,
while striving to create the appropriate capital structure for the
combined entity going forward.
Closing of the sale of the Marine Products Terminals is subject
to customary closing conditions, including clearance under the
Hart-Scott-Rodino Act.
Bank of America Merrill Lynch acted as exclusive financial
advisor and Sidley Austin LLP served as legal counsel to American
Midstream for the Marine Products transaction.
About American Midstream Partners, LP
American Midstream Partners, LP is a growth-oriented limited
partnership formed to provide critical midstream infrastructure
that links producers of natural gas, crude oil, NGLs, condensate
and specialty chemicals to end-use markets. American Midstream's
assets are strategically located in some of the most prolific
offshore and onshore basins in the Permian, Eagle Ford,
East Texas, Bakken and Gulf Coast.
American Midstream owns or has an ownership interest in
approximately 5,100 miles of interstate and intrastate pipelines,
as well as ownership in gas processing plants, fractionation
facilities, an offshore semisubmersible floating production system
with nameplate processing capacity of 90 MBbl/d of crude oil and
220 MMcf/d of natural gas; and terminal sites with approximately
6.7 MMBbls of storage capacity.
For more information about American Midstream Partners, LP,
visit: www.americanmidstream.com. The content of our website is not
part of this release.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act of 1934, as amended. We have used the words
"could," "expect," "intend," "may," "strive," "will," "would," and
similar terms and phrases to identify forward-looking statements in
this press release. Although we believe the assumptions upon which
these forward-looking statements are based are reasonable, any of
these assumptions could prove to be inaccurate and the
forward-looking statements based on these assumptions could be
incorrect. Many of the factors that will determine these results
are beyond our ability to control or predict. These factors include
the risk factors described in Part I, Item 1A. in our Annual Report
on Form 10-K for the year ended December 31,
2017, filed with the SEC on April 9,
2018, and our other filings with the SEC. All future written
and oral forward-looking statements attributable to us or persons
acting on our behalf are expressly qualified in their entirety by
the previous statements. The forward-looking statements herein
speak as of the date of this press release. We undertake no
obligation to update such statements for any reason, except as
required by law.
Investor Contact
American Midstream Partners, LP
Mark Schuck
Director of Investor Relations
(346) 241-3497
ir@americanmidstream.com
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SOURCE American Midstream Partners, LP