CorEnergy Infrastructure Trust Inc. said on May 25 it’s entered into a definitive agreement to sell its MoGas and Omega pipeline systems that serve Missouri and Illinois to Spire Inc. for approximately $175 million in cash, according to a press release. (Source: Shutterstock.com)
CorEnergy Infrastructure Trust Inc. said on May 25 it’s entered into a definitive agreement to sell its MoGas and Omega pipeline systems that serve Missouri and Illinois to Spire Inc. for approximately $175 million in cash, according to a press release.
The transaction, which is subject to final working capital adjustments, is expected to close in third-quarter 2023 and is subject to anti-trust clearance and customary closing conditions. CorEnergy estimated that net proceeds, after taxes and transaction-related costs, will total $165 million.
The proceeds will be used to repay all CorEnergy bank debt at closing — approximately $100 million.
“The sale of our MoGas and Omega systems enables us to significantly de-leverage our balance sheet and strengthen our overall capital structure,” said Dave Schulte, CorEnergy chairman and CEO. “This is one of several 2023 initiatives we are undertaking to improve our balance sheet and operating results, including proposed tariff increases and corporate cost reductions.”
The company said it plans to provide an updated 2023 outlook, including opportunities within its California energy transition and other business initiatives after the transaction closes.
Evercore acted as the company’s financial adviser and K&L Gates served as legal counsel.
CorEnergy is a real estate investment trust that owns and operates or leases regulated natural gas transmission and distribution lines and crude oil gathering, storage and transmission pipelines and associated rights-of-way.
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