CorEnergy acquires MoGas Pipeline

CorEnergy Infrastructure Trust Inc.

CorEnergy Infrastructure Trust Inc. (NYSE: CORR) has closed its acquisition of the ownership and operations of the MoGas Pipeline System for $125 million in cash.

In connection with the consummation of the acquisition, the company has entered into a newly amended revolving credit facility with borrowing capacity of up to $93 million in aggregate.

“We expect that future opportunities associated with this transaction together with enhanced liquidity under our credit facility will provide further growth and diversification to our asset base, which will ultimately benefit our shareholders.”

The MoGas Pipeline System is a 263-mile interstate natural gas pipeline system which originates in northeast Missouri, and extends into western Illinois and central Missouri. The pipeline maintains receipt points with Mississippi River Transmission Corporation in eastern St. Louis and with Panhandle Eastern Pipe Line Company and Rockies Express Pipeline on the northern end of the system.

Primary customers are Laclede Gas Company and Ameren Missouri, both serving the St. Louis metropolitan area with local gas distribution services, and Omega Pipeline serving Ft. Leonard Wood in central Missouri. Omega Pipeline is a wholly owned subsidiary of CorEnergy. Transportation agreements are governed by FERC-approved natural gas tariffs.

CorEnergy paid $125 million in cash for the purchase of the MoGas Pipeline System. The acquisition price was funded with a combination of borrowings under the company’s newly upsized credit facility and with proceeds from CorEnergy's public offering of common stock, which also closed this morning.

The company has amended and upsized its existing $30 million revolving credit facility. The newly amended facility provides CorEnergy with borrowing commitments of $93 million, consisting of $90 million at the parent entity level and $3 million at the subsidiary entity level. At the parent entity level, the company has $32 million presently drawn against the credit facility, providing for $58 million of un-utilized borrowing capacity that is subject to a borrowing base. The credit facility has a maturity date of Nov. 24, 2018.

BofA Merrill Lynch is acting as exclusive structuring advisor in connection with CorEnergy's energy infrastructure real asset strategy.

Regions Capital Markets, a division or Regions Bank, and Merrill Lynch, Pierce, Fenner & Smith Inc. served as joint lead arrangers and joint bookrunners for the credit facility. Regions Bank will serve as administrative agent, and Bank of America NA will serve as syndication agent for the credit facility.

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