Hess Midstream extends exchange offer for Hess Infrastructure notes

By Angela McDaniels

Tacoma, Wash., Nov. 1 – Hess Midstream Partners LP extended its exchange offer for the $800 million 5 5/8% senior notes due 2026 issued by Hess Infrastructure Partners LP and Hess Infrastructure Partners Finance Corp. to 5 p.m. ET on Dec. 2 from 5 p.m. ET on Nov. 4, according to a company news release.

Holders had tendered 99.32% of the notes as of 5 p.m. ET on Oct. 31.

As previously reported, the issuers are soliciting consents to amend the indenture governing the notes to eliminate some of the covenants, restrictive provisions and events of default and to amend the merger covenant in a way that will cause the existing notes to be assumed by Hess Midstream upon the consummation of the planned reorganization of Hess Midstream and Hess Infrastructure and the exchange offer.

In order for the proposed amendments to be adopted, consents are needed from the holders of at least a majority of the notes.

The total consideration is $1,000 principal amount of new 5 5/8% senior notes due 2026 issued by Hess Midstream for each $1,000 principal amount of existing 5 5/8% notes.

The total consideration includes an early tender premium of $30 per $1,000 principal amount of notes tendered by 5 p.m. ET on Oct. 18, the early tender date.

However, if the requisite consents are received by the early tender date, then all holders who tender will receive the total consideration, not just those who tendered by the early tender date.

In addition, holders who grant consents by the early tender date will receive a $2.50 consent fee in cash.

The new notes will accrue interest from and including the most recent date on which interest was paid on the existing notes, Aug. 15.

The exchange offer and consent solicitation are subject to a number of conditions, including the consummation of the restructuring.

The information agent is D.F. King & Co., Inc. (212 269-5550, 866 745-0265 or hess@dfking.com).

Hess Midstream is a master limited partnership that was formed to own, operate, develop and acquire midstream assets to provide services to Hess Corp. and third-party customers. Hess Infrastructure Partners is a midstream energy joint venture between Hess and Global Infrastructure Partners. They are based in Houston.

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