© 2015 The Texas Lawbook.
By Natalie Posgate
(May 8) – Houston-based Crestwood Equity Partners and Crestwood Midstream Partners announced earlier this week that the two limited partnerships will combine to simplify Crestwood’s corporate structure. The single publicly-traded partnership will have a consolidated enterprise value of approximately $7.5 billion.
Andrews Kurth and Simpson Thacher represented Crestwood Equity in the deal. Locke Lord represented the Crestwood Equity conflicts committee, which provided a fairness opinion on the proposed transaction. Paul Hastings represented Crestwood Midstream’s conflicts committee.
Houston partner Mike O’Leary led the Andrews Kurth team, which also included partners Mark Young, Tom Ford, Allison Mantor, Robert McNamara and Kay Lynn Brumbaugh and associates Chris Porter, Taylor Landry and Warren Knull, who are all based in the firm’s Houston, Dallas and The Woodlands offices.
Houston partner Chris May and New York partner Bill Curbow led the deal for Simpson Thacher.
Houston partner Bill Swanstrom led Locke Lord’s deal team, which also included Houston partner David Taylor, Austin partner Michelle Earley and Houston associate Vince Cangelosi.
Houston energy partners Gislar Donnenberg and Paris Theofanidis and MLP tax partner Greg Nelson led the Paul Hastings team, which also included Houston partners Doug Getten, Jimmy Valee and Sam Cooper; Houston associates Kim Hicks and Will Mabry; and attorneys from the firm’s New York and Washington, D.C. offices.
Following the completion of the merger, which is expected to close in the third quarter of 2015, Crestwood Midstream will no longer be a publicly traded partnership, instead a wholly-owned subsidiary of Crestwood Equity.
Under the terms of the merger agreement, Crestwood Midstream will merge with a newly formed subsidiary of Crestwood Equity. Crestwood Midstream unitholders will receive 2.75 units of Crestwood Equity for each unit of Crestwood Midstream they own, representing a 17 percent premium to the closing price of Crestwood Midstream’s units as of May 5, a joint company release said.
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