“American Midstream (AMID) Reports Drop Down of Trans-Union Interstate Pipeline, Commencement of Deliveries to Southern Natural Gas”
American Midstream Partners, LP (NYSE: AMID) (“AMID” or “Partnership”) announced today the acquisition and closing of 100% of the equity interests in Trans-Union Interstate Pipeline, L.P. (“Trans-Union”) from affiliates of ArcLight Capital Partners, LLC (“ArcLight”), which controls the general partner of the Partnership, for a total consideration of approximately $48 million. The consideration consisted of approximately $15.5 million cash funded from borrowings under the Partnership’s revolving credit facility and the assumption of $32.5 million of non-recourse debt.
A conflicts committee of the board of directors of the general partner of the Partnership composed of independent directors, as well as the full board of directors of the general partner, unanimously approved the transaction. This committee was advised by Thompson & Knight LLP as to legal matters.