Deals this week: Tallgrass Energy, Vesta Energy, Cheniere Energy

Tallgrass Energy Partners, through its subsidiary Tallgrass Midstream (TMID), has agreed to the acquisition of the Douglas natural gas gathering system located in the Powder River Basin, Wyoming, US, from DCP Midstream.

The purchase consideration for the acquisition is fixed at $128m.

The 1,500 mile-long Douglas gathering system runs through four counties in Wyoming and serves as a primary gathering system for TMID’s Douglas processing plant.

Scheduled for completion in the second quarter of this year, the deal will allow Tallgrass Energy to expand its midstream operations in the Powder River Basin.

The proceeds from the sale are intended to be used by DCP Midstream to fund potential expansions of the Sand Hills natural gas liquids (NGL) pipeline, and new processing capacity and gathering systems in the DJ Basin.

Vesta Energy intends to raise $216.62m through the issue of shares, at a price of $3.3 a share, in a private placement.

The placement will be subscribed to by Riverstone Holdings and JOG Capital, as well as fund houses managed by JOG and the management team of Vesta Energy.

BMO Capital Markets and Goldman Sachs Canada have been appointed as the company's financial advisors for the placement.

The proceeds from the placement are intended to be used by the company to implement an accelerated development programme across its extensive land base.

The private placement is scheduled for completion on 26 May.

Cheniere Energy, through its wholly owned subsidiary Cheniere Corpus Christi Holdings, has announced the pricing of 5.125% senior secured notes due 30 June 2027.

The company intends to raise $1.5bn through the public offering, which has been upsized from $1bn.

The net proceeds from the offering are intended to be used by the company to prepay a portion of the principal amount currently outstanding under its credit facilities.

The public issue is scheduled to be completed on 19 May.

Delek Logistics Partners plans to raise $250m through the issue of senior unsecured notes due 2025.

The proceeds from the placement are intended to be used by Delek to repay a part of the outstanding borrowings under its revolving credit facility.

Aspen Midstream has secured commitment from EnCap Flatrock Midstream and the management team of the company for an initial equity investment of $200m.

Mack Matheson & Marchesoni was the legal adviser to Aspen Midstream for the transaction, while Thompson & Knight acted as the legal advisor to EnCap Flatrock.