Global Infrastructure Partners Announces Preferred Equity Investment in Easton Energy
NEW YORK,Oct. 2,2021 --Global Infrastructure Partners ("GIP") announced that it has made a preferred equity investment of up to $245 million in Easton Energy LLC ("Easton"). Easton is a Houston based midstream company focused on developing infrastructure assets that support the transportation,storage,and processing of natural gas liquids (NGL),refined products,and petrochemicals along the Gulf Coast. Easton's assets include liquid hydrocarbon salt cavern storage facilities in Markham,Texas,and roughly 450 miles of pipelines that connect key product markets along the Texas and Louisiana Gulf Coast.
GIP is making the investment through Global Infrastructure Partners Capital Solutions Fund II ("GIP CAPS II"),part of GIP's Credit platform ("GIP Credit"). The Easton investment represents the second commitment made by GIP CAPS II. CAPS provides customized credit financings for infrastructure issuers in GIP's core sectors of midstream energy,power,renewables,energy transition,transport and water/waste,while leveraging GIP's significant operating expertise.
Proceeds from the investment will be used to fund the organic growth of Easton's asset base and other strategic growth opportunities,with a tailored delayed draw structure to support both existing and future growth projects. Easton is backed by Cresta Fund Management,agrowth-oriented,middle market-focused private equity firmthat invests in sustainable and conventional energy,industrial,materials,and agricultural infrastructure. The highly experienced Easton management team brings considerable experience in managing natural gas liquids and feedstock transportation and distribution services.
Denny Sreckovic,Managing Director at GIP,said: "We are very pleased to have entered into this transaction with Easton and its sponsor,Cresta. Easton's assets provide services that are core to its Gulf Coast midstream and petrochemical customers. This investment exemplifies GIP's ability to provide tailored financing solutions for high quality,critical infrastructure projects and partner with experienced management teams and sponsors."
Brad Ramsey,President and CEO of Easton,said: "We welcome this opportunity to partner with GIP,a leading infrastructure investor with experience in the midstream sector. GIP was able to tailor a Preferred Equity financing structure that optimally supports our continued growth capital needs and complements our existing capital structure. We view GIP as an important financial partner as Easton looks to continue its strategic infrastructure expansion."
Evercore acted as financial advisor to Easton and the company received legal counsel from,Willkie Farr & Gallagher. Latham & Watkins provided legal counsel to GIP.
About Global Infrastructure Partners
Global Infrastructure Partners ("GIP") is an independent infrastructure fund manager that makes equity and debt investments in infrastructure assets and businesses. GIP targets investments in the energy,transport,digital infrastructure,and water/waste sectors in both OECD and select emerging market countries. GIP's teams are located in 10 offices: London,New York,Stamford (Connecticut),Sydney,Melbourne,Brisbane,Mumbai,Delhi,Singapore and Hong Kong. GIP Credit provides financing solutions and makes debt and non-common equity investments in infrastructure assets and companies. For more information,visit www.global-infra.com.
About Cresta Fund Management
Cresta Fund Management ("Cresta") is a growth-oriented private equity firm that invests in sustainable and conventional energy and industrial infrastructure. Founded in 2016 and headquartered in Dallas,Cresta Management's founding partners are seasoned industry veterans who bring value across the investment cycle from initial diligence through business operations. For more information,please visit: www.crestafunds.com.
About Easton Energy
Easton Energy ("Easton") is a Houston based midstream company focused on developing infrastructure assets that support the transportation,and petrochemicals. Easton's primary assets include liquid hydrocarbon salt cavern storage facilities at Markham,TX and approximately 450 miles of product distribution pipelines that connect key product markets along the Texas and Louisiana Gulf Coast. For more information,please visit: www.eastonenergy.com.
