Crestwood Equity Partners LP (NYSE: CEQP) and Crestwood Midstream Partners LP (NYSE: CMLP) (collectively “Crestwood”) have closed the merger between Crestwood Equity and Crestwood Midstream following approval of the merger by Crestwood Midstream’s unitholders. The transaction closed Sept. 30.
Crestwood Equity’s common units will continue to trade on the New York Stock Exchange under the symbol CEQP, while Crestwood Midstream’s common units ceased to be traded on the New York Stock Exchange after the close of business on Sept. 30.
Under the terms of the merger agreement, each Crestwood Midstream common unitholder (other than Crestwood Equity and its affiliates) will receive 2.75 common units of Crestwood Equity for every one common unit of Crestwood Midstream owned. Beginning in the third quarter of 2015, Crestwood Midstream unitholders will begin receiving quarterly distributions for all Crestwood Equity units received through the merger transaction. Crestwood Equity’s annual distribution is currently $0.55 per common unit and is paid in accordance with Crestwood Equity’s partnership agreement.
Crestwood Midstream’s incentive distribution rights were canceled upon completion of the merger, and Crestwood Midstream now operates as a wholly owned subsidiary of Crestwood Equity. In conjunction with the merger, Crestwood Midstream has entered into an amended and restated credit agreement establishing a $1.5 billion revolving credit facility. The five-year credit facility will be available to fund Crestwood’s ongoing working capital and capital requirements.