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NEW YORK, March 16, 2022 (GLOBE NEWSWIRE) — On March 1, 2022, Center Coast Brookfield MLP & Energy Infrastructure Fund (NYSE:CEN) learned of a definitive agreement outlining a potential transaction involving its investment in KKR Eagle Co-Invest LP (the “Private Investment”), which is a private vehicle through which CEN holds an indirect investment in Veresen Midstream Limited Partnership (“VMLP”) , a privately owned Canadian natural gas and natural gas liquids midstream business. VMLP focuses on providing natural gas and natural gas liquids processing service solutions to the producer community in Alberta and British Columbia, Canada. Upon the consummation of this transaction, VMLP is expected to be combined with Energy Transfer Canada and additional natural gas gathering and processing assets currently owned by Pembina Pipeline Corporation (TSX:PPL). The resulting joint venture (“NewCo”) will be one of the largest, most diversified natural gas infrastructure platforms in Canada and will be 60% owned by PPL and 40% owned by Kohlberg Kravis Roberts & Co. LP (“KKR” ) and its funds and affiliates, including the Private Investment.
NewCo is expected to have a better commercial and leverage profile and benefit from increased efficiencies and economies of scale, creating a platform of critical natural gas infrastructure with greater customer diversity, significant synergies, reduced costs, and a well-respected management team. PPL and KKR have further communicated that NewCo will integrate Environmental, Social and Governance (ESG) considerations into its governance structure, and the assets will be included in PPL’s target of achieving a 30 percent reduction in greenhouse gas emissions intensity by 2030, against a 2019 baseline.
CEN is reviewing the available information and has been in communication with KKR. At this time, CEN’s fair market valuation of the Private Investment is not expected to be adjusted due to the potential transaction. CEN’s position on valuation of its Private Investment is subject to change at any time as more information becomes available. Following an initial analysis of the potential transaction, we believe the business combination resulting in NewCo may be modestly accretive. CEN has not been asked, and does not anticipate that it will be asked, to contribute additional capital in view of the potential transaction.
PPL and KKR have indicated that the transaction is expected to close in the second half of 2022, subject to customary closing conditions and regulatory approvals.
Forward-Looking Statements
Certain statements made in this news release that are not historical facts are referred to as “forward-looking statements” under the US federal securities laws. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors . Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward -looking statements are subject to certain risks and uncertainties that could cause actual results to differ from the …
Full story available on Benzinga.com
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