RICHMOND, Va., Sept. 29, 2015 /PRNewswire/ -- Dominion
Midstream Partners, LP (NYSE: DM), has closed the previously
announced acquisition of a 25.93 percent ownership interest in
Iroquois Gas Transmission System, L.P. Dominion Midstream issued
approximately 8.6 million common units to affiliates of National
Grid plc and New Jersey Resources Corporation to acquire their
ownership interests in Iroquois.
Thomas F. Farrell II, chairman,
president and chief executive officer of Dominion Resources, Inc.
(NYSE: D) and Dominion Midstream GP, LLC, said:
"This acquisition will help Dominion Midstream to achieve
best-in-class distribution growth rates without having to drop
additional Dominion-held assets into the partnership through the
end of 2016. We are also excited that National Grid and New Jersey
Resources have joined us as partners in Dominion Midstream."
Approximately 6.8 million units were issued to National Grid,
and approximately 1.8 million units were issued to New Jersey
Resources. National Grid and New Jersey Resources have agreed to
certain transfer restrictions applicable to such units including,
with certain exceptions, a general one-year lockup period, and have
been granted certain registration rights and piggyback registration
rights with respect to future Dominion Midstream equity offerings.
No public market issuance of units was made in connection with
these transactions.
Iroquois Gas Transmission System, L.P., is a Delaware limited partnership that owns and
operates a 416-mile, FERC-regulated natural gas transmission
pipeline extending from the Canada-United
States border near Waddington,
N.Y., through New York and
Connecticut to South Commack, N.Y., on Long Island and Hunts Point, N.Y., in the
Bronx.
The ownership stake in Iroquois is expected to contribute about
$20 million annually in cash flows to
Dominion Midstream. The partnership expects that those cash flows
and cash flows associated with Dominion Midstream's existing
preferred equity interest in Cove Point and ownership of Dominion
Carolina Gas Transmission will be sufficient to support annual cash
distribution growth at Dominion Midstream at the targeted rate of
22 percent through 2016.
Dominion Midstream has no plans to acquire the 24.72 percent
ownership interest in Iroquois currently held by Dominion Gas
Holdings, LLC, a wholly owned subsidiary of Dominion Resources.
About Dominion Midstream
Dominion Midstream is a growth-oriented Delaware limited partnership formed by
Dominion Resources, Inc., in March
2014 to own, operate, develop and acquire natural gas
import, storage, regasification, transportation and related assets.
It is headquartered in Richmond,
Va. For more information about Dominion Midstream, visit its
website at www.dommidstream.com.
This news release includes certain forward-looking
information that is subject to various risks and uncertainties.
Words such as "expect," "target," "would," "will," "anticipate,"
"believe," "estimate," "intend," "may," "plan," "predict,"
"project," "should" and similar terms and phrases are used to
identify forward-looking statements. A number of factors that could
cause actual results to differ from those in the forward-looking
statements are identified in Dominion Midstream's filings with the
SEC. You are referred to those discussions for further
information. These statements are not guarantees of future
performance and involve certain risks, uncertainties and
assumptions that are difficult to predict. Any forward-looking
statement speaks only as of the date on which it is made, and the
company undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date on
which it is made.
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SOURCE Dominion Midstream Partners