Milbank represented Hartree Partners, LP (“Hartree”) in connection with the execution of definitive agreements whereby Plains All American (Nasdaq: PAA & PAGP) will sell its Pine Prairie and Southern Pines natural gas storage facilities to an affiliate of Hartree for a total cash consideration of $850 million (the “transaction”).
The assets included in the transaction consist of approximately 70 billion cubic feet of total working gas capacity across nine caverns, along with associated base gas, header pipelines and compression facilities. Subject to the receipt of regulatory approvals and customary closing conditions, the transaction is expected to close in the third quarter of 2021. As of June 30, 2021, Plains will re-classify the assets associated with the transaction to “held for sale” on its balance sheet and recognize a corresponding non-cash loss of approximately $480 million in accordance with GAAP requirements.
The Milbank team was led by Global Corporate partners John D. Franchini and Aaron Stine and Global Project, Energy and Infrastructure Finance partner Dan Bartfeld with support from Global Corporate associates Pragyan Patnaik and Alessandra Rosales and Global Project, Energy and Infrastructure Finance associates Sean O’Neill, Geoff Butterworth, Sean Rail and Filippos Papageorgiou.
