Western Gas to draw from revolving facility to fund Nuevo acquisition

By Marisa Wong

Madison, Wis., Oct. 29 – Western Gas Partners, LP plans to use borrowings under its revolving credit facility to help fund its acquisition of Nuevo Midstream, LLC, according to an 8-K filing with the Securities and Exchange Commission.

The transaction is valued at $1.5 billion in cash. Under a joint venture agreement, Western Gas will offer a third party the right to acquire a 50% interest in Nuevo. The company said that if the third party does not participate, it is prepared to purchase 100% of Nuevo.

According to a press release, Western Gas had $1 billion of available capacity under its revolver as of Sept. 30.

Based in Houston, Western Gas is a master limited partnership formed by Anadarko Petroleum Corp. to own, operate, acquire and develop midstream energy assets.

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