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Bought additional equity in Crestwood Holdings as part of Crestwood Holdings Partner's purchase of interest in Crestwood Midstream held by Quicksilver Resources.

Houston-based Crestwood Midstream Partners LP will issue approximately 2.3 million common units in connection with the conversion of a promissory note payable to Crestwood Holdings LLC. The promissory note was acquired as part of the acquisition by Crestwood Holdings Partners LLC of all of Quicksilver Resources Inc.'s ownership interests in Crestwood LP and its general partner on Oct. 1.

The conversion of the promissory note into common units is required under the terms of Crestwood LP's revolving credit facility. The balance outstanding on the note payable was approximately $57.6 million on Oct. 1, which represented 18.5% of the total debt outstanding of Crestwood LP. The additional units are expected to be issued prior to Oct. 29.

"Crestwood Holdings is pleased to acquire additional equity interests in Crestwood LP," says Robert G. Phillips, chairman and chief executive. "The additional equity ownership of common units further aligns us with the public unitholders and strengthens Crestwood LP's balance sheet by reducing leverage without having to access the public markets," he adds.

Crestwood LP is a growth-oriented, midstream master limited partnership which owns and operates 100% fee-based gathering, processing, treating and compression assets servicing gas producers in the Barnett shale in the Fort Worth Basin in Texas. Crestwood Holdings is a private energy company formed by affiliates of First Reserve Corp., a leading private equity fund manager with extensive investments in the energy industry, and Crestwood Management LLC to pursue the acquisition and development of North American midstream assets and businesses.