EnLink Midstream Reduces Stake In EnLink Midstream Holdings By 25%

(RTTNews) - EnLink Midstream Partners, LP (ENLK) said Tuesdayd that it has acquired a 25% equity interest in EnLink Midstream Holdings, LP from EnLink Midstream, LLC (ENLC) for about $925 million.

The deal consideration consists entirely of Partnership units, resulting in the issuance of about 31.6 million units to the General Partner. The Partnership's total equity interest in EnLink Midstream Holdings is now 75%, with the General Partner owning the remaining 25% interest.

The acquisition will be immediately accretive to EnLink Midstream Partners, with the deal value representing an approximate nine times multiple of estimated adjusted EBITDA of EnLink Midstream Holdings for 2015.

EnLink Midstream Holdings owns the assets that Devon Energy Corp. (DVN) contributed to EnLink Midstream in March 2014, which include gathering and processing systems in North Texas and Oklahoma. The assets are supported by long-term, fixed-fee contracts with minimum volume commitments. The drop down of the remaining 25 percent equity interest in EnLink Midstream Holdings is expected to occur later in 2015.