ArcLight in $90m deal for midstream company

ArcLight Capital Partners bought American Midstream Partners from American Infrastructure MLP Funds for $90 million, according to a press statement from ArcLight.

 

The transaction “resulted in a change of control” for American Midstream, ArcLight said, noting its portfolio company High Point Infrastructure Partners will run American Midstream. The deal Tuesday gave ArcLight 90 percent ownership of the general partner (GP) of American Midstream, and 100 percent of the debt.

 

ArcLight went on to reveal American Midstream would post a $90 million ‘Series A’ convertible preferred unit offering in exchange for $15 million in cash.

 

ArcLight announced Stephen Bergstrom, who resigned as president and chief operating officer (COO) of Dynegy in 2002, has been appointed chairman of the American Midstream board. In addition, ArcLight co-founder Daniel Revers and managing director Jake Erhard were named to the board of the Denver-headquartered midstream energy service.

 

President and chief executive Brian Bierbach and chief financial officer (CFO) Dan Campbell will remain with American Midstream, ArcLight said.

 

In March, ArcLight merged its Enogex midstream energy concern with CenterPoint Energy in a joint venture. Headquartered in New York, ArcLight Capital Partners is a $10 billion fund manager dedicated to energy and energy infrastructure.