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.


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