Source: Atlas Pipeline Partners
Atlas Pipeline Partners (NYSE:APL) has completed the sale of its Elk City natural gas gathering and processing system to Enbridge Energy Partners (NYSE: EEP) for $686.1 million in cash, including a positive working capital adjustment.
Atlas Pipeline will use net proceeds to repay all but $40 million of its senior secured debt. Net proceeds from the transaction will repay APL’s $422 million secured term loan and $250 million of its revolving credit facility, leaving approximately $340 million of liquidity under this line.
Eugene Dubay, the Partnership’s Chief Executive Officer, stated, “We are pleased to announce the closing of the Elk City transaction. By using the proceeds to deleverage and improve the balance sheet, our company is positioned to take advantage of our significant organic growth projects in the Marcellus shale and Mid-Continent. We look forward to operating from a position of strength and flexibility.”