Milbank LLP advised leading alternative asset manager Apollo (NYSE: APO) in connection with the definitive agreement between Enbridge Inc. (TSX: ENB) (NYSE: ENB) and KKR to form a new joint venture, subject to the satisfaction of customary closing conditions, led by capital accounts advised by KKR, in collaboration with funds and affiliates managed by Apollo. The joint venture will fund the previously sanctioned Aspen Point and Sunrise Expansion Programs (collectively, "the expansions") of the Westcoast natural gas pipeline system. The expansions have regulatory approval and are commercially underpinned by long-term take-or-pay contracts.
Enbridge's Westcoast natural gas pipeline system is an essential piece of energy infrastructure capable of transporting up to 3.6 billion cubic feet of natural gas per day (bcf/d). Under the agreement, KKR and Apollo will invest approximately C$2.7 billion to fund the expansions, including C$0.7 billion of cash to Enbridge at closing, in exchange for an indirect, cumulative 29% interest in the aggregate Westcoast system upon Sunrise entering service.
Click here to read the official press release.
The Milbank team was led by Global Project, Energy and Infrastructure Finance Group chair Dan Bartfeld and partner Sean O’Neill with special counsel Evelyn Liristis and Kristina Hokenberg, associates Sam Fishbein, Jackie Karol and Ashley Kemper, and law clerks Naini Rautela and Olivia Chang.
