Rex Energy Corp. (REXX) said July 9 it closed on the sale of its entire interest in its partner, Water Solutions Holdings LLC to American Water Works Co. Inc. (AWK).
Rex, faced with debt and overspending that has been dragging on the company, sold its 60% interest in its Keystone Clearwater Solutions in a $130 million transaction.
The deal nets State College, Pa.-based Rex $64 million in proceeds. Proceeds will be used to pay down the revolving line of credit and for general corporate purposes.
Keystone, based in Hershey, Pa., is a water service provider serving the oil and gas industry in the Appalachian region of Pennsylvania, Ohio and West Virginia. In the purchase and sale agreement, American Water will continue to provide field and water-related services to Rex Energy within its Appalachian Basin properties in Pennsylvania and Ohio.
RBC Capital Markets advised Water Solutions Holdings LLC on the transaction.
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