FORT WORTH, TEXAS – Brazos Midstream Holdings, LLC (“Brazos” or the “Company”) and Old Ironsides Energy today announced the completion of 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 LLC 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 (MMcf/d).
Jefferies LLC acted as the exclusive financial advisor to Brazos in connection with the transaction, and RBC Capital Markets acted as the exclusive financial advisor to MSI.
Thompson & Knight LLP served as legal counsel to Brazos, Morgan Stanley was represented by Latham & Watkins LLP, and Old Ironsides Energy was represented by Weil, Gotshal & Manges LLP.
About Brazos Midstream
Headquartered in Fort Worth, Texas, Brazos is one of the largest private natural gas and crude oil midstream companies in the Delaware Basin. The Company’s assets are located in Reeves, Ward and Pecos counties and include approximately 350 miles of natural gas and crude oil gathering pipelines, a natural gas processing complex with 260 MMcf/d of processing capacity in operation with an additional 200 MMcf/d of capacity under construction, and approximately 50,000 barrels of crude oil storage. Brazos is supported by an equity commitment from Morgan Stanley Infrastructure and serves leading major and independent oil and gas producers, which together have made long-term dedications from over 300,000 acres.
For more information, please visit www.brazosmidstream.com.
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About Old Ironsides Energy
Old Ironsides Energy, LLC is an independent oil and gas investment manager that has built a platform for investing in private equity and drilling joint ventures, and has a history of creating value in the energy business. For more information, please visit www.oldironsidesenergy.com.
About Morgan Stanley Infrastructure Partners
Morgan Stanley Infrastructure Partners is a leading global infrastructure investment platform that focuses on long-term investments in energy and infrastructure assets. For further information about Morgan Stanley Infrastructure Partners, please visit https://www.morganstanley.com/im/en-us/institutional-investor/strategies/real-assets/private-infrastructure.html.