Noble Midstream gets pipeline investment from Global Infrastructure Partners
Noble Midstream Partners announced it has secured a $200M equity commitment from Global Infrastructure Partners Capital Solutions Fund to fund capital contributions to Dos Rios Crude Intermediate LLC, a newly-formed subsidiary holding Noble Midstream's 30% equity interest in the EPIC Crude Pipeline. Of the $200M total commitment, $100M will be funded during the first quarter of 2019, with the remaining $100M available for a one-year period, subject to certain conditions precedent. The Preferred Equity is perpetual and has a 6.5% annual dividend rate, payable quarterly in cash, with the ability to defer payment during the first two years following the closing. In addition, Noble Midstream can redeem the Preferred Equity in whole or in part at any time for cash at a predetermined redemption price. GIP can request redemption of the Preferred Equity following the later of the sixth anniversary of the Preferred Equity closing or the fifth anniversary of the EPIC Crude Pipeline completion date at a pre-determined base return. Proceeds from the Preferred Equity will be used to repay a portion of outstanding borrowings under the Partnership's revolving credit facility, which were drawn to fund the Partnership's exercise of its option to invest in the EPIC Crude Pipeline.