Dominion Midstream to acquire interests in Iroquois Gas Transmission System

Dominion Midstream Partners LP (NYSE: DM) has entered into agreements with affiliates of National Grid plc and New Jersey Resources Corp. to acquire ownership interests in Iroquois Gas Transmission System LP, in exchange for the issuance of 8.6 million common units in Dominion Midstream having an agreed-upon value of $286.5 million.

As part of the agreements, National Grid and New Jersey Resources would contribute their combined 25.93% ownership interests in Iroquois to Dominion Midstream in exchange for newly issued Dominion Midstream common units. Dominion Midstream has no plans to acquire the ownership interest in Iroquois currently held by Dominion Gas Holdings LLC, a wholly owned subsidiary of Dominion Resources Inc. (NYSE: D).

Under these agreements, 6.8 million units (representing $225.4 million at the agreed-upon unit price) would be issued to National Grid, and 1.8 million units (representing $61.1 million at the agreed-upon unit price) would be issued to New Jersey Resources.

National Grid and New Jersey Resources have agreed to certain transfer restrictions applicable to such units including, with certain exceptions, a general one-year lockup period, and would be granted certain registration rights and piggyback registration rights with respect to future Dominion Midstream equity offerings. No public market issuance of units is planned in connection with these transactions.

The closing of both transactions is subject to clearance under the Hart-Scott-Rodino Act.

 

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...