Global Infrastructure Partners Makes Preferred Equity Investment in Easton Energy
Posted on 10/02/2021
Global Infrastructure Partners (GIP) made a preferred equity investment of up to US$ 245 million in Easton Energy LLC. 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 Dallas-based Cresta Fund Management, a growth-oriented, middle market-focused private equity firm that invests in sustainable and conventional energy, industrial, materials, and agricultural infrastructure.
Advisors
Evercore acted as financial advisor to Easton and the company received legal counsel from, Willkie Farr & Gallagher. Latham & Watkins provided legal counsel to GIP.
In December 2018, Easton Energy acquired approximately 416 miles of Gulf Coast natural gas liquids (NGL) pipelines from The Williams Companies, Inc. (NYSE: WMB) for US$ 177 million in cash. The pipeline assets are primarily used to transport natural gas liquids from various supply sources to petrochemical consumers in Texas and Louisiana markets. The transaction was completed in partnership with Easton’s financial sponsor, Cresta Energy Capital.
