Dominion Midstream Partners To Acquire Interests In Iroquois Gas Transmission System
August 18,2015
Dominion Midstream Partners, LP announced that it has entered into agreements with affiliates of National Grid plc and New Jersey Resources Corporation to acquire their ownership interests in Iroquois Gas Transmission System, L.P., in exchange for the issuance of approximately 8.6 million common units in Dominion Midstream having an agreed-upon value of approximately $286.5 million.
As part of the agreements, National Grid and New Jersey Resources would contribute their combined 25.93 percent ownership interests in Iroquois to Dominion Midstream in exchange for newly issued Dominion Midstream common units. Dominion Midstream has no plans to acquire the ownership interest in Iroquois currently held by Dominion Gas Holdings, LLC, a wholly owned subsidiary of Dominion Resources, Inc.
Under these agreements, approximately 6.8 million units (representing approximately $225.4 million at the agreed-upon unit price) would be issued to National Grid, and approximately 1.8 million units (representing approximately $61.1 million at the agreed-upon unit price) would be issued to New Jersey Resources. National Grid and New Jersey Resources have agreed to certain transfer restrictions applicable to such units including, with certain exceptions, a general one-year lockup period, and would be granted certain registration rights and piggyback registration rights with respect to future Dominion Midstream equity offerings. No public market issuance of units is planned in connection with these transactions.
Iroquois Gas Transmission System, L.P., is a Delaware limited partnership that owns and operates a 416-mile, FERC-regulated natural gas transmission pipeline extending from the Canada-United States border near Waddington, N.Y., through New York and Connecticut to South Commack, N.Y., on Long Island and Hunts Point, N.Y., in the Bronx.