Shell Midstream to draw on facilities to purchase pipeline interests

By Sarah Lizee

Olympia, Wash., May 13 – Shell Midstream Partners, LP plans to using borrowings under new or existing credit facilities to acquire additional interests in two pipelines, according to a press release.

The company said that 75% of the purchase price would be funded with credit facility borrowings and 25% will be funded using proceeds from a private placement.

Shell announced Monday that it plans to acquire a 25.97% equity interest in Explorer Pipeline Co. and 10.125% equity interest in Colonial Pipeline Co. for $800 million.

The acquisition is expected to close in the second quarter of 2019.

Shell Midstream is a Houston-based midstream master limited partnership formed by Royal Dutch Shell to own, operate, develop and acquire pipelines and other midstream assets.

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