HOUSTON, Aug. 1, 2018 /PRNewswire/ -- American
Midstream Partners, LP (NYSE: AMID) ("AMID" or "Partnership") today
announced the closing of its previously announced 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.
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 successful completion of this transaction strengthens the
Partnership's balance sheet and supports its deleveraging plan,
while demonstrating the Partnership's ability to execute on its
revised capital allocation strategy. The proceeds of this sale will
initially go toward reducing indebtedness under the Partnership's
revolving credit facility, while meaningfully enhancing
liquidity.
Bank of America Merrill Lynch acted as exclusive financial
advisor and Sidley Austin LLP served as legal counsel to AMID for
the Marine Products Terminals transaction.
REFINED PRODUCTS TERMINALS
The Partnership and DKGP Energy Terminals LLC, a joint venture
between Delek Logistics Partners, LP and Green Plains Partners LP,
terminated the previously announced agreement for the sale of the
Partnership's refined products terminalling business (the "Refined
Products Terminals"). The termination was due to extensive federal
regulatory approval delays as a result of the highly strategic
nature of these assets. The assets continue to perform well, with
strong demand and high utilization rates. The Partnership
will begin actively remarketing the Refined Products Terminals.
SOUTHCROSS TRANSACTION
The Partnership received notice, on July
29, 2018, of termination of the Agreement and Plan of
Merger, dated October 31, 2017 from
Southcross Energy Partners, L.P. and notice of termination of the
Contribution Agreement, dated October 31,
2017 from Southcross Holdings LP. While the Southcross
combination provided compelling growth opportunities, the
Partnership was unable to arrange a prudent financing plan to
consummate the transaction. The Partnership has continually
identified additional commercial opportunities and the termination
of the combination allows the Partnership to focus on these
attractive organic growth projects without the financial strain
that the Southcross transaction would have created. These
identified opportunities are not relegated to a single segment and
encompass all of the Partnership's core areas, providing the
opportunity to create greater scale and density as well as
expanding market reach.
Absent a significant amount of new low-cost equity capital, the
Southcross combination would have inherently stressed the
Partnership's liquidity, while significantly limiting the pursuit
of additional growth opportunities and restricting the desired pace
of debt reduction. In recognition of those considerations,
following Southcross's notice of termination, Moody's Investors
Services confirmed the Partnership's corporate family rating and
upgraded its liquidity rating. The closing of the
Partnership's Marine Products Terminals divestiture further
strengthens the Partnership's liquidity position.
The Partnership's core business continues to perform strongly
and is expected to continue generating meaningful cash flow. The
Partnership is encouraged by continued growth across its asset base
and the increase in producer activity in and around the
Partnership's core asset footprint provides additional
opportunities for continued growth. The Partnership anticipates
releasing its second quarter 2018 results on August 9, 2018 and will provide additional
earnings call details prior to the release.
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 and condensate
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 4.3 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
View original
content:http://www.prnewswire.com/news-releases/american-midstream-closes-sale-of-marine-products-terminals-receives-liquidity-upgrade-from-moodys-and-provides-update-on-previously-announced-transactions-300689882.html
SOURCE American Midstream Partners, LP