Receive our newsletter – data, insights and analysis delivered to you
  1. News
March 29, 2015

EIG to invest $1bn in Breitburn Energy Partners

EIG Global Energy Partners has agreed to invest $1bn in Breitburn Energy Partners, a publicly traded independent oil and gas firm.

EIG Global Energy Partners has agreed to invest $1bn in Breitburn Energy Partners, a publicly traded independent oil and gas firm.

EIG is purchasing $350m of convertible preferred equity, and $650m of senior secured notes issued by Breitburn.

The preferred equity pays monthly dividends that equal 8% annually, and will give EIG an 18% voting interest in Breitburn. The company will also be allowed to appoint one director to Breitburn’s board.

"The new notes, which mature in 2020 and pay a 9.25% annual interest rate, will rank senior to its existing debt, and any future unsecured debt."

Breitburn said the new notes, which mature in 2020 and pay a 9.25% annual interest rate, will rank senior to its existing debt, and any future unsecured debt.

The company intends to use $938m in net proceeds from the offerings to pay down borrowings under its credit facility of around $1.24bn.

Breitburn added that it is revising its borrowing base under the credit facility to $1.8bn through April 2016.

Content from our partners
How the North of Tyne region is leveraging its legacy to define its future
Q&A with Chevron Lubricants’ Paul Sly, global industrial OEM specialist, and Nathan Knotts, global brand technical manager
The important role of antifoam agents in oil-gas separation and amine treating

EIG chief executive officer Blair Thomas said: "We will work with Breitburn with the goal of creating significant value and distribution growth for unitholders, given the substantial liquidity our investment will provide and the growth opportunities available in the current market environment."

Breitburn focuses on the acquisition, development, and production of oil and gas properties across the US.

EIG has invested more than $18.5bn in the energy sector via over 300 projects or companies in 35 countries on six continents.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU