Western Gas Partners LP (NYSE: WES) said March 14 it closed the acquisition of Springfield Pipeline LLC from Anadarko Petroleum Corp. (NYSE: APC) for $750 million.
Springfield's sole asset is a 50.1% interest in the Maverick Basin gathering system, located in Dimmit, La Salle, Maverick and Webb counties in South Texas.
Western Gas Partners is an MLP formed by Anadarko. The Springfield gathering system collects Eagle Ford Shale production for Anadarko and its partners.
The dropdown acquisition was funded through the issuance of $449 million in perpetual convertible preferred units to First Reserve Advisors LLC and Kayne Anderson Capital Advisors LP, the issuance of WES common units to Anadarko and Western Gas Equity Partners LP (NYSE: WGP) and $247.5 million of borrowings under its revolver.
Western Gas retained Robert W. Baird & Co. Inc. as its financial adviser and Baker Botts LLP as its legal adviser on the purchase of units from Western Gas Equity.
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