Alinda raises debt for stake in Maurepas Pipeline

Alinda Capital Partners is raising debt to fund the acquisition of all Class B shares in the Maurepas Pipeline located in the Gulf Coast region of Louisiana, giving the investment firm an overall minority shareholding in the asset. In late August 2018, SemGroup has entered into an agreement with investment funds managed by Alinda Capital Partners to sell a 49 percent interest in Maurepas Pipeline (Maurepas Pipeline, LLC) for $350 million, subject to customary post-closing adjustments. The transaction, which will be structured as the sale of Class B interests, values Maurepas at approximately 13 times earnings before interest, taxes and depreciation.

Under the terms of the agreement, SemGroup has an option to acquire Alinda’s interest prior to the fifth anniversary of closing, subject to a 24-month non-call period. The call price is based on a predetermined fixed return on Alinda’s investment, including capital contributions.

SemGroup plans to use the net proceeds to pay down debt and for general corporate purposes. The transaction is expected to close by year-end 2018, and is subject to certain closing conditions.

SemGroup will remain the majority owner and operator of the pipeline system, which consists of three separate transportation pipes serving refineries in the Gulf Coast region of Louisiana.