Access Midstream plans $1.16 billion sale of limited partner interests

Offerings fund planned $2.16 billion cash acquisition of Chesapeake

By Devika Patel

Knoxville, Tenn., Dec. 11 - Access Midstream Partners LP said it plans to sell up to $1.16 billion of limited partner interests, including $350 million of paid in kind equity to Williams and Global Infrastructure Partners.

Global Infrastructure Partners will also sell 34.5 million of Access' subordinated limited partner units to Williams. The investor also will acquire 50% of the general partner of Access.

Access also said it has obtained debt commitments to finance the remaining balance of the purchase price for the company to acquire Chesapeake Midstream Operating, LLC, which was also announced Tuesday. Citigroup, Barclays and UBS Investment Bank have provided commitments for a $1 billion acquisition bridge facility.

The acquisition will settle for $2.16 billion in cash. The acquisition adds natural gas gathering and processing assets in the Eagle Ford, Utica and Niobrara liquids-rich plays and expands Access' existing position in both the Haynesville and Marcellus dry gas plays.

Based in Oklahoma City, Access Midstream, formerly Chesapeake Midstream Partners, LP, is a midstream natural gas services provider.

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