NGL Energy Partners signs definitive agreement to acquire Hillstone

NGL Energy Partners LP has executed a definitive agreement to acquire all of the equity interests of Hillstone Environmental Partners, LLC from Golden Gate Capital for approximately US$600 million, subject to certain adjustments. Hillstone provides water pipeline and disposal infrastructure solutions to producers with a core operational focus in the state line area of southern Eddy and Lea Counties, New Mexico and northern Loving County, Texas in the Delaware Basin.

NGL expects to integrate the Hillstone system into its existing Delaware Basin platform to maximize uptime and redundancy for its producer customers.

NGL has arranged financing for the transaction including certain preferred equity and debt commitments in an amount necessary to fund the entire purchase price.

The transaction remains subject to satisfaction of specified closing conditions, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. NGL expects this transaction to close in 2019.

Barclays is acting as financial advisor to NGL. Barclays and Jefferies have provided a committed debt financing to NGL to support the transaction. Winston & Strawn LLP is acting as legal counsel to NGL on the Hillstone transaction. Hunton Andrews Kurth LLP is serving as legal counsel to NGL on the financing transactions.

Tudor, Pickering, Holt & Co. and Jefferies are acting as financial advisors to Golden Gate Capital and Hillstone. Kirkland & Ellis LLP and Nob Hill Law Group, P.C. are acting as legal counsel to Golden Gate Capital and Hillstone.