Rex Energy Corp. (Nasdaq: REXX), together with its partners in Water Solutions Holdings LLC, has entered into a purchase and sale agreement with American Water Works Co. Inc. pursuant to which American Water will acquire Water Solutions and its subsidiaries, including Keystone Clearwater Solutions LLC.
The transaction is valued at $130 million, inclusive of cash and debt. Rex Energy, which holds a 60% interest in Water Solutions and is selling its entire interest, expects net proceeds from the sale (after taxes and subject to customary adjustments) to be $66 million.
The proceeds will be used to pay down the revolving line of credit and for general corporate purposes. The transaction is subject to customary closing conditions and regulatory approval. In connection with the purchase and sale agreement, American Water will continue to provide field- and water-related services to Rex Energy within its Appalachian Basin properties in Pennsylvania and Ohio.
RBC Capital Markets advised Water Solutions Holdings LLC with respect to this transaction.