Western Gas plans $175 million term loan for purchase of Anadarko assets

By Sara Rosenberg

New York, Nov. 13 - Western Gas Partners LP is getting a new $175 million five-year term loan to help fund its acquisition of certain midstream assets from Anadarko Petroleum Corp., according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Anadarko is providing the loan.

Pricing on the loan is 4% for the first two years, and then pricing will switch to Libor plus 150 basis points.

The loan can be repaid after two years.

Western Gas is purchasing the midstream assets, which are located in Powder River Basin, from Anadarko for total consideration of $210 million.

Other acquisition financing will come from the issuance of about 2.6 million common units to Anadarko at an implied price of $13.69 per unit.

The acquisition and financing transactions are expected to close in December and are subject to standard conditions and adjustments.

The Woodlands, Texas-based Western Gas is a limited partnership formed by Anadarko to own, operate, acquire and develop midstream energy assets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.