HOUSTON, March 18, 2013 -- On March 14, 2013, CenterPoint Energy, Inc., OGE Energy Corp. and ArcLight Capital Partners, LLC announced that they have entered into an agreement to form a joint venture that will include CenterPoint Energy’s interstate pipelines and field services businesses and the midstream business of Enogex LLC, which is owned jointly by subsidiaries of OGE Energy and ArcLight.
Also on March 14, 2013, in connection with the expected formation of the partnership, CenterPoint Energy and Enogex LLC signed a commitment letter with Citigroup Global Markets, UBS Securities LLC and UBS Loan Finance LLC , pursuant to which a lending affiliate of Citigroup Global Markets and UBS Loan Finance LLC have committed to provide the full amount of a $1.05 billion unsecured 3-year term loan facility for the partnership upon closing. CenterPoint Energy and Enogex also signed a commitment letter with the arrangers, pursuant to which the arrangers have agreed to use their commercially reasonably efforts to syndicate a $1.4 billion unsecured 5-year revolving credit facility for the partnership.
The joint venture, which will initially be structured as a private limited partnership, will have combined assets of nearly $11 billion and will be managed by a general partner whose governance will be shared equally by CenterPoint Energy and OGE Energy. Subject to certain adjustments at closing, CenterPoint Energy, OGE Energy and ArcLight will have a 59%, 28% and 13% limited partner interest in the partnership, respectively.
Baker Botts represented CenterPoint Energy in the transaction.
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