Brazos Midstream Holdings and Old Ironsides Energy has completed its previously announced sale of the company’s Delaware Basin subsidiaries to a subsidiary of North Haven Infrastructure Partners II (NHIP II) for $1.75 billion.
NHIP II is an investment fund managed by Morgan Stanley Infrastructure (MSI). The transaction included committed debt financing of $950 million ($900 million of term loan and $50 million of revolving credit facility), underwritten and arranged by Jefferies Finance and Royal Bank of Canada.
Brazos now operates as a portfolio company of NHIP II and the management members remain in their current roles. The recapitalization will be used to support Brazos’ growth strategies in the Delaware Basin, including the build-out of the company’s third cryogenic natural gas processing plant, expected to be operational by the end of 2018. This expansion will bring Brazos’ total operated processing capacity to approximately 460 million cubic feet per day.
