2011-03-31-2011-03-23-2011-05-02

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
1.9BB
Description

Purchased assets consisting of NGL, refined products, cryogenic & petrochemical storage storage facilities in TX, MS, LA & WV.

ETP-Regency Midstream Holdings LLC, a joint venture owned by Energy Transfer Partners LP (NYSE: ETP) and Regency Energy Partners LP (Nasdaq: RGNC), has closed its purchase of LDH Energy Asset Holdings LLC, the midstream assets business segment of Wilton, Conn-based Louis Dreyfus Highbridge Energy LLC for approximately $1.925 billion in cash.

ETP contributed approximately $1.348 billion in exchange for a 70% ownership interest in ETP-Regency LLC, while Regency contributed approximately $577.5 million in exchange for a 30% ownership interest in ETP-Regency LLC. ETP-Regency LLC will be managed by a two-person board of directors, with ETP and Regency each having the right to appoint one director. ETP will operate the assets on behalf of the joint venture with the assistance of certain existing LDH employees.

The midstream assets consist of an NGL, refined products and petrochemical storage facility at Mont Belvieu, Texas; an NGL storage facility at Hattiesburg, Mississippi; a mixed-stream NGL pipeline originating in the Permian Basin of West Texas and terminating at Mont Belvieu, Texas; refinery off-gas processing and NGL/petrochemicals fractionation facilities in South Louisiana; a 20% interest in the Sea Robin cryogenic gas processing plant in Louisiana; and several growth projects in varying stages of development. Louis Dreyfus is retaining its coal-blending terminal on the Big Sandy River in West Virginia, which was owned by midstream assets.

LDH Energy president and chief executive William C. Reed II says, "The success of this transaction is a testament to the strength of the LDH Energy platform. I look forward to continuing to pursue the growth strategy of our businesses both domestically and internationally. We are actively pursuing investment opportunities in both the midstream sector and in our merchant activities."

A portion of the proceeds from this transaction will be retained in the company and reinvested in the growth initiatives in the merchant segment and the remaining assets operations.

Goldman, Sachs & Co. and Barclays Capital Inc. were the exclusive financial advisors to LDH Energy. Gibson, Dunn & Crutcher was legal counsel to LDH Energy. LCT Capital LLC was financial advisor to Highbridge Capital Management LLC.