Summit Midstream Partners (SMLP) and Energy Capital Partners II have signed definitive agreements for the acquisition of Summit Midstream Partners, LLC (Summit Investments), the privately held company that indirectly owns SMLP’s general partner, Summit Midstream GP.
The deal also includes the acquisition of 5.9 million SMLP common units owned separately by ECP, for $35 million in cash plus warrants covering 10 million SMLP common units.
ECP will loan the full $35 million of cash proceeds to SMLP under a first-lien senior secured credit agreement that will reach maturity on March 31, 2021.
SMLP said it will use the proceeds of the ECP loan to enhance its liquidity position and to create a more simplified corporate structure whereby Summit Investments, and all of its subsidiaries, will become wholly owned subsidiaries of SMLP, and SMLP will be governed by a board consisting of a majority of independent directors.
Summit Investments owns 100 percent of Sum
