Brazos Midstream Holdings and its financial sponsor, Old Ironsides Energy, agreed to sell its Delaware Basin subsidiary companies to North Haven Infrastructure Partners II, an investment fund managed by Morgan Stanley Infrastructure.
The companies will be sold for approximately $1.75 billion in cash, with the close expected to occur in Q2/18, subject to customary approvals and closing conditions.
The transaction includes committed debt financing of $950 million – consisting of a $900 million term loan and a $50 million revolving credit facility – underwritten and arranged by Jefferies Finance and Royal Bank of Canada.
After closing, Brazos will retain its name and operate as a portfolio company of NHIP II. The members of the Brazos management team will remain in their current roles.
“I am proud of what the Brazos team has accomplished in three short years,” said Brad Iles, Brazos CEO. “We have built best-in-class assets in one of the most prolific and economic oil and gas producing regions in the United States. We are thankful for MSI’s commitment to our team and with their support we will continue to aggressively expand our business to serve our customers’ rapidly growing needs.”
Jefferies acted as exclusive financial advisor to Brazos in connection with the transaction, while RBC Capital Markets acted as exclusive financial advisor to MSI.
Headquartered in Fort Worth, TX, Brazos is a private natural gas and crude oil midstream company, with assets in Reeves, Ward and Pecos counties.