Sanchez Production Partners LP (SPP) said Oct. 14 it has closed its acquisition of pipeline, gathering and compression assets located in Western Catarina, in the Eagle Ford Shale in South Texas, from Sanchez Energy Corp. (SN).

SPP is owned by Houston-based Sanchez Energy affiliates. The transaction was worth $345 million.

In conjunction with the transaction, SPP said it has completed the sale of class B preferred units to Stonepeak Infrastructure Partners, a private equity firm that focuses on the infrastructure space.

As part of the issuance of the units, Stonepeak has received two seats on the board of directors of SPP's general partner and has appointed Luke Taylor and Jack Howell to fill those seats.

SPP also completed amendments to its $500 million credit facility, which increased the borrowing base to $200 million from $110 million. This excludes the value of the company's Oklahoma and Kansas assets.

As a result of the amendments and lower utilization of the borrowing base, the interest rate paid by SPP on the debt outstanding decreased by 0.5%. SPP currently has $106 million in debt outstanding under the credit facility, which matures in March 2020.

Additionally, SPP's management intends to recommend that the board of directors of its general partner approve a plan to begin distributions at an initial annualized rate of $1.60 per unit.

Subject to approval of the plan at the board's next regularly scheduled meeting, the company anticipates that a distribution of $0.40 per unit will be paid in November for the third quarter of 2015.

SPP said it expects to provide further distribution guidance and updates on plans for growth along with its third-quarter 2015 earnings release in November.