Houston, Sept. 12, 2017 (GLOBE NEWSWIRE) -- Shell Midstream Partners, L.P. (NYSE: SHLX) today announced the agreement to sell 10,370,000 common units for a total purchase price of approximately $275 million. The common units are being sold to funds managed by Tortoise Capital Advisors, L.L.C. in connection with a registered direct offering and sales of common units pursuant to our at-the-market, or “ATM” equity distribution program, for an average weighted cost of $26.55 per common unit. The registered direct offering is expected to close on or about September 15, 2017, subject to customary closing conditions.
Shell Midstream Partners expects to use the net proceeds to repay amounts outstanding under the partnership’s credit facilities and for general partnership purposes. Borrowings under the credit facilities were used to fund acquisitions of high quality, fee-based infrastructure assets in line with the partnership’s strategy.
“We have continued to execute our strategy to build scale and create a best-in-class portfolio of infrastructure assets. This equity raise and execution format demonstrates our ability to maintain flexibility in the capital markets. We expect to continue to deliver highly accretive acquisitions in support of our top tier distribution growth rate” said John Hollowell, CEO of Shell Midstream Partners.
About Shell Midstream Partners, L.P.
Shell Midstream Partners, headquartered in Houston, Texas, is a fee-based, growth-oriented midstream master limited partnership formed by Royal Dutch Shell to own, operate, develop and acquire pipelines and other midstream assets. Shell Midstream Partners' assets consist of interests in entities that own crude oil and refined products pipelines serving as key infrastructure to transport onshore and offshore crude oil production to Gulf Coast and Midwest refining markets and to deliver refined products from those markets to major demand centers, as well as interests in entities that own natural gas and refinery gas pipelines which transport offshore natural gas to market hubs and deliver refinery gas from refineries and plants to chemical sites along the Gulf Coast.