Williams Agrees to Purchase 6.975 Million Common Units from Williams Partners in Private Placement
August 26 2016 - 08:30AM
Business Wire
The Williams Companies Inc. (NYSE: WMB) (“Williams”) and
Williams Partners L.P. (NYSE: WPZ) announced today that Williams
has agreed to purchase in a private placement from Williams
Partners approximately 6.975 million common units representing
limited partner interests in Williams Partners, for a total
purchase price of approximately $250 million.
This private placement is a component of the plan referenced in
the Second Quarter 2016 Financial Results news releases on Aug. 1,
2016, of Williams and Williams Partners intended to enhance value,
strengthen their credit profiles and fund the development of a
significant portfolio of fee-based growth projects at Williams
Partners, while maintaining flexibility.
The price per common unit of $35.84 is equal to the average of
the high and low trading prices of the Partnership’s common units
on the New York Stock Exchange for each of the five trading days
from August 19 to August 25, 2016, less a discount of 2.5% per
common unit, which price per common unit was calculated using the
same method and discount that initially will be used to determine
the price of the common units to be issued pursuant to the
Partnership’s anticipated distribution reinvestment plan.
Williams Partners plans to use the net proceeds from the private
placement to repay amounts outstanding under the partnership’s
credit facility and for general partnership purposes.
When the private placement is complete, Williams’ aggregate
ownership interest in Williams Partners, including the general
partner interest, will remain at approximately 60 percent.
The common units to be issued in the private placement have not
been registered under the Securities Act of 1933, as amended (the
“Securities Act”), or any state securities laws and may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the
Securities Act and applicable state laws.
About Williams
Williams (NYSE: WMB) is a premier provider of large-scale
infrastructure connecting North American natural gas and natural
gas products to growing demand for cleaner fuel and feedstocks.
Headquartered in Tulsa, Okla., Williams owns approximately 60
percent of Williams Partners L.P. (NYSE: WPZ), including all of the
2 percent general-partner interest. Williams Partners is an
industry-leading, large-cap master limited partnership with
operations across the natural gas value chain from gathering,
processing and interstate transportation of natural gas and natural
gas liquids to petchem production of ethylene, propylene and other
olefins. With major positions in top U.S. supply basins and also in
Canada, Williams Partners owns and operates more than 33,000 miles
of pipelines system wide - including the nation’s largest volume
and fastest growing pipeline - providing natural gas for
clean-power generation, heating and industrial use. Williams
Partners’ operations touch approximately 30 percent of U.S. natural
gas. www.williams.com
Portions of this document may constitute “forward-looking
statements” as defined by federal law. Although the company
believes any such statements are based on reasonable assumptions,
there is no assurance that actual outcomes will not be materially
different. Any such statements are made in reliance on the “safe
harbor” protections provided under the Private Securities Reform
Act of 1995. Additional information about issues that could lead to
material changes in performance is contained in the company’s
annual reports filed with the Securities and Exchange
Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20160826005105/en/
WilliamsMedia Relations:Lance Latham,
918-573-9675orInvestor Relations:John Porter,
918-573-0797orBrett Krieg, 918-573-4614
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