Energy Transfer Partners LP (ETP) closed on the agreement to acquire certain interests in PennTex Midstream Partners LP (PTXP) from various parties for total consideration of about $640 million in ETP units and cash.
ETP now owns 100% of the general partner of PTXP and all of its incentive distribution rights, as well as 6.3 million common units and all 20 million subordinated units of PTXP. That represents about 65% of the total limited partner interests in PTXP.
Credit Suisse was financial adviser to ETP, and Andrews Kurth Kenyon LLP was its legal counsel.
In a separate Nov. 2 press release, PTXP said Thomas F. Karam, Christopher G. Carter, Cameron J. Dunn, David W. Hayes and Christopher D. Ray resigned from the board of directors of the general partner, effective Nov. 1.
ETP appointed new officers of the general partner, PTXP said in that press release.They include Kelcy L. Warren, CEO (Principal Executive Officer); Matthew S. Ramsey, President and COO; and Thomas E. Long, CFO (Principal Financial Officer).
The independent directors--Ambassador Robert Jordan, David C. Lawler and Richard S. Walker--remain on the board and continue serving on its audit committee, the press release said.
ETP retained Stephen M. Moore, the vice president, general counsel and secretary of the general partner; and Kenneth E. Hertel, the vice president, controller and chief accounting officer of the general partner, for a transitional period.
ETP and PTXP also entered an evaluation agreement under which, for six months, they will not take tender offers for the outstanding PTXP common units or another business combination without approvals.
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