Global Infrastructure SherpaWestlake Chemical Partners to Acquire Additional Interest in Petroplex Pipeline
Westlake Chemical Partners L.P. announced it has agreed to acquire an additional 21.6% interest in Petroplex Pipeline, LLC from OpCo for $130 million. This increases Westlake's ownership in the pipeline, which supports its operations.
Source Intelligence
The acquisition will increase the Partnership’s limited partner interest in OpCo from approximately 18.3% to approximately 22.8%. Quote: The acquisition will increase the Partnership’s limited partner interest in OpCo from approximately 18.3% to approximately 22.8% The Partnership intends to finance the acquisition with borrowings under its revolving credit facility and the proceeds of a private placement of 2,940,818 common units representing limited partner interests of the Partnership (the “private placement”) to certain institutional investors and an entity (the “affiliate entity”)for the benefit of certain family members of Messrs. Albert Chao and James Chao. Quote: The Partnership intends to finance the acquisition with borrowings under its revolving credit facility and the proceeds of a private placement of 2,940,818 common units representing limited partner interests of the Partnership (the “private placement”) to certain institutional investors and an entity (the “affiliate entity”)for the benefit of certain family members of Messrs. Albert Chao and James Chao The private placement was priced at $21.40 per common unit and will result in gross proceeds of approximately $62.9 million. Quote: The private placement was priced at $21.40 per common unit and will result in gross proceeds of approximately $62.9 million.
"Westlake Chemical Partners LP (NYSE: WLKP) (the “Partnership”) today announced that it has agreed to acquire an additional 4.50% limited partner interest in Westlake Chemical OpCo LP (“OpCo”) on a fully diluted basis"
"Westlake Chemical Partners LP (NYSE: WLKP) (the “Partnership”) today announced that it has agreed to acquire an additional 4.50% limited partner interest in Westlake Chemical OpCo LP (“OpCo”) on a fully diluted basis"
"OpCo sells approximately 95% of its ethylene production to Westlake Chemical Corporation under a long-term supply agreement, which provides for a stable $0.10 margin per pound."
"This committee was advised by Evercore as to financial matters"
"This committee was advised by Evercore as to financial matters and Akin Gump Strauss Hauer & Feld LLP as to legal matters."
"Barclays Capital Inc. acted as placement agent in connection with the private placement."