Friday 26 June 2020

GIP invests in senior secured bullet notes of Whistler Pipeline LLC

KUALA LUMPUR, June 26 -- Global Infrastructure Partners (GIP) recently announced its credit fund, GIP Spectrum Fund, L.P., along with its affiliates and co-investors (GIP Spectrum) has closed on the purchase of US$325 million of an aggregate US$400 million senior secured bullet notes in Whistler Pipeline LLC. (US$1 = RM4.277)

Whistler Pipeline is a greenfield, approximately 500‐mile, 2.0 Bcf/d natural gas pipeline, connecting the Permian Basin to the Agua Dulce hub near Corpus Christi, Texas.

The project is underpinned by long term, contractual minimum volume agreements from investment grade customers and represents critical natural gas takeaway infrastructure from the prolific Permian Basin.

According to a statement, the project will provide Permian producers direct access to the South Texas markets, as well as liquefied natural gas and Mexican export markets.

Proceeds from the notes, together with a senior secured bank term loan, senior secured amortising note and common equity from Whistler Pipeline’s consortium of owners will fund the project construction.

The Whistler Pipeline is expected to be in-service in the third quarter of 2021. The project was developed by WhiteWater, an Austin-based independent midstream company.

GIP Partner and Chair of GIP Credit, Jennifer Powers said the project would provide a critical connection that will alleviate the constraints for takeaway capacity out of the Permian Basin.

“This investment exemplifies GIP Spectrum’s ability to provide unique credit solutions in size for high quality, essential infrastructure projects, and move quickly to efficiently conduct due diligence even during these unprecedented market conditions.”

-- BERNAMA

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