Hess Infrastructure holders tender 99.32% of 5 5/8% notes so far

By Angela McDaniels

Tacoma, Wash., Oct. 21 – Hess Midstream Partners LP had received tenders for $794,598,000 principal amount of 5 5/8% senior notes due 2026 as of 5 p.m. ET on Oct. 18, according to a company news release.

The tenders received represent 99.32% of the $800 million outstanding notes, which were issued by Hess Infrastructure Partners LP and Hess Infrastructure Partners Finance Corp.

As previously reported, Hess Midstream is holding an exchange offer and consent solicitation for the notes that began Oct. 4. The early tender date was 5 p.m. ET on Oct. 18, and the offer will end at 5 p.m. ET on Nov. 4.

The issuers are soliciting consents to amend the indenture governing the notes to eliminate some of the covenants, restrictive provisions and events of default and to amend the merger covenant in a way that will cause the existing notes to be assumed by Hess Midstream upon the consummation of the planned reorganization of Hess Midstream and Hess Infrastructure and the exchange offer.

For the proposed amendments to be adopted, consents are needed from the holders of at least a majority of the notes. This condition has been met.

The total consideration is $1,000 principal amount of new 5 5/8% senior notes due 2026 issued by Hess Midstream for each $1,000 principal amount of existing 5 5/8% notes.

The total consideration includes an early tender premium of $30.00 per $1,000 principal amount of notes.

Because the requisite consents were received by the early tender date, all holders who tender will receive the total consideration, not just those who tendered by the early tender date.

In addition, holders who granted consents by the early tender date will receive a $2.50 consent fee in cash. The aggregate consent payment will be $1,986,495.

The new notes will accrue interest from and including the most recent date on which interest was paid on the existing notes, Aug. 15.

The exchange offer and consent solicitation are subject to a number of conditions, including the consummation of the restructuring.

The information agent is D.F. King & Co., Inc. (212 269-5550, 866 745-0265 or hess@dfking.com).

Hess Midstream is a master limited partnership that was formed to own, operate, develop and acquire midstream assets to provide services to Hess Corp. and third-party customers. Hess Infrastructure Partners is a midstream energy joint venture between Hess and Global Infrastructure Partners. They are based in Houston.

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