Baker Botts Represents Financial Advisor to the Conflicts Committee of Hess Midstream Partners LP in $750 million Sponsor Unit Repurchase
Deal Description: Hess Midstream Partners LP (NYSE: HESM) today announced that the Board of Directors (“HESM Board”) of its general partner unanimously approved a $750 million unit repurchase by HESM’s consolidated subsidiary, Hess Midstream Operations LP (“HESM OpCo”), of approximately 31 million Class B units of HESM, equal to approximately 11% of the consolidated company, held by affiliates of Hess Corporation and Global Infrastructure Partners, HESM’s sponsors (“Sponsors”).
The purchase price per Class B unit is $24.00, representing an approximate 4% discount to the 30-day volume weighted average trading price of HESM Class A shares through July 27, 2021. As a result of the unit repurchase transaction, public ownership of HESM on a consolidated basis will increase to approximately 9.5%. The unit repurchase is anticipated to close in August 2021, following the record date for the quarterly distribution for the quarter ended June 30, 2021, such that Sponsors will receive the quarterly distribution on their currently outstanding Class B units. HESM expects to fund the unit repurchase through debt financing.
The proposed unit repurchase transaction has been unanimously approved by the HESM Board and by a conflicts committee of the HESM Board comprised of independent directors.
For more information, please see HESM’s press release by clicking here.
Counsel to Intrepid Partners, LLC, Financial Advisor to the Conflicts Committee: Baker Botts L.L.P.
Value: $750 million
Baker Botts Lawyers/Office Involved:
- Corporate: Josh Davidson (Partner; Houston); Jennifer Wu (Special Counsel; Austin)
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