Global Infrastructure Partners (GIP) made a preferred equity investment of up to $245 million in Easton Energy LLC to support the Houston company’s strategic infrastructure expansion plans along the Texas and Louisiana Gulf Coast.
“We welcome this opportunity to partner with GIP, a leading infrastructure investor with experience in the midstream sector,” Brad Ramsey, president and CEO of Easton, commented in a company release on Sept. 30.
Easton is backed by Cresta Fund Management and focuses on developing infrastructure assets that support the transportation, storage and processing of NGL, refined products and petrochemicals.
“GIP was able to tailor a preferred equity financing structure that optimally supports our continued growth capital needs and complements our existing capital structure,” Ramsey continued. “We view GIP as an important financial partner as Easton looks to continue its strategic infrastructure expansion.”
Proceeds from the GIP investment will be used to fund the organic growth of Easton’s asset base and other strategic growth opportunities, with a tailored delayed draw structure to support both existing and future growth projects.
Currently, Easton’s primary assets include liquid hydrocarbon salt cavern storage facilities at Markham, Texas and approximately 450 miles of product distribution pipelines that connect key product markets along the Texas and Louisiana Gulf Coast.
“We are very pleased to have entered into this transaction with Easton and its sponsor, Cresta,” Denny Sreckovic, managing director at GIP, added in the release. “Easton’s assets provide services that are core to its Gulf Coast midstream and petrochemical customers.”
GIP is an independent infrastructure fund manager that makes equity and debt investments in infrastructure assets and businesses. The firm is making the investment in Easton through Global Infrastructure Partners Capital Solutions Fund II (GIP CAPS II), part of GIP’s credit platform.
The Easton investment represents the second commitment made by GIP CAPS II. CAPS provides customized credit financings for infrastructure issuers in GIP’s core sectors of midstream energy, power, renewables, energy transition, transport and water/waste, while leveraging GIP’s significant operating expertise, the release said.
“This investment exemplifies GIP’s ability to provide tailored financing solutions for high quality, critical infrastructure projects and partner with experienced management teams and sponsors,” Sreckovic also noted.
Latham & Watkins LLP represented GIP in the transaction with a corporate deal team led by Houston partner Lauren Anderson and Houston associate Alice Parker.
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