Phillips 66 Partners Announces Private Placement of $750 Million Series A Perpetual Convertible Preferred Units

9/24/17

HOUSTON--(BUSINESS WIRE)--Phillips 66 Partners LP (NYSE: PSXP) announced that it has entered into an agreement to sell $750 million of newly issued Series A Perpetual Convertible Preferred Units at a price of $54.27 per preferred unit and 6,304,204 common units at $47.59 per common unit in a private placement. The Preferred Units will pay a distribution of 5.0 percent per year for three years, and thereafter a distribution equal to the greater of 5.0 percent per year and the amount the Preferred Units would have received if converted into common units. The Preferred Units are generally convertible into PSXP common units on a one-for-one basis after, at the purchasers’ option, two years, and, at the Partnership’s option, three years, subject to certain conditions. Investors include funds managed by Stonepeak Partners LP, First Reserve and Tortoise Capital Advisors, L.L.C. The private placement is expected to close in early October 2017, subject to the satisfaction of customary closing conditions.

The Partnership expects to use a portion of the net proceeds from the offering to fund its announced acquisition of a 25 percent interest in each of Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC (collectively, the “Bakken Pipeline”), and a 100 percent interest in Merey Sweeny, L.P. The Partnership expects to use the remaining proceeds for general partnership purposes, including funding of future acquisitions and organic projects and repayment of outstanding indebtedness.

About Phillips 66 Partners

Headquartered in Houston, Texas, Phillips 66 Partners is a growth-oriented master limited partnership formed by Phillips 66 to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum product and natural gas liquids pipelines and terminals and other transportation and midstream assets.

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