SemGroup Corp. (NYSE: SEMG) completed the $350 million sale of a stake in a Louisiana Gulf Coast crude oil pipeline system, the Tulsa, Okla.-based company said Oct. 22.

Investment funds managed by Alinda Capital Partners agreed in August to acquire a 49% stake in SemGroup’s Maurepas Pipeline. The transaction was structured as the sale of Class B interests and values Maurepas at roughly 13 times EBITDA, according to the SemGroup press release.

The Maurepas Pipeline is a crude oil pipeline system owned and operated by SemGroup that consists of three separate transportation pipes located in the Gulf Coast region of Louisiana.

SemGroup will remain the majority owner and operator of the pipeline system following the transaction.

Under the terms of the company’s agreement with Alinda, SemGroup will also have an option to acquire Alinda’s interest prior to the fifth anniversary of closing, after a 24-month non-call period. The call price is based on a predetermined fixed return on Alinda’s investment, including capital contributions.

SemGroup President and CEO Carlin Conner said the transaction with Alinda brings the company “significantly closer” toward achieving its leverage goals. The company plans to use proceeds from the sale to pay down debt and for general corporate purposes.

“In addition to paying down debt and de-levering our balance sheet with a very efficient cost of capital transaction, we plan to reinvest some of the proceeds in high-return areas surrounding our footprint,” Conner said in a statement. “Additionally, the terms of the transaction give us the ability to buy back Alinda’s interest in Maurepas, a cash flow-stable pipeline serving Gulf Coast refineries, at favorable terms.”

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