Back Breitburn Energy Announces $1 Bln. Strategic Investment By EIG Global

(RTTNews) - Breitburn Energy Partners LP (BBEP) on Sunday announced a $1 billion strategic investment in the company by EIG Global Energy Partners.

Elaborating on the transaction with EIG, Breitburn said it has agreed to sell $350 million of perpetual convertible preferred units and $650 million of senior secured notes in simultaneous private offerings to investment funds managed by EIG, and other purchasers.

The offerings are expected to close on April 8.

"We are pleased that EIG has decided to make a sizable strategic investment in Breitburn. We view the investment as an endorsement of the quality of our diversified asset portfolio and future growth prospects," said Hal Washburn, CEO of Breitburn.

Breitburn said it expects to use the net proceeds from the private offerings of about $938 million to repay borrowings under its credit facility.

In conjunction with the private offerings, Breitburn said it is amending its credit facility to allow for the issuance of the Senior Notes and to establish a revised borrowing base of $1.8 billion through April 2016.

Breitburn also said it plans to reduce its common distribution to $0.50 per unit on an annualized basis in conjunction with these private offerings.