Summit Midstream Partners has entered into agreements with TPG, a global alternative asset firm, for the purchase of up to $80 million of redeemable, preferred interests in Summit Permian Transmission Holdco, a newly created, unrestricted subsidiary of SMLP that indirectly owns SMLP’s 70 percent interest in Double E Pipeline.
In connection with the transaction, TPG will fund the next $80 million of Permian Holdco’s capital calls associated with Double E. The investment by TPG will be made by TPG Energy Solutions (TES), the firm’s energy-specific structured equity vehicle.
Double E is developing a 1.35 Bcf/d natural gas transmission pipeline that will provide transportation service from multiple receipt points in the Delaware Basin to various delivery points in and around the Waha Hub in Texas.
Permian Holdco will pay a quarterly distribution rate of 7 percent on the outstanding preferred units and has the option to pay this distribution in-kind during the
