Hess Infrastructure joint venture to get $1 billion credit facility

By Sara Rosenberg

New York, June 11 – Hess Infrastructure Partners plans on getting a $1 billion five-year credit facility in connection with its formation as a joint venture between Hess Corp. and Global Infrastructure Partners, according to a news release.

The facility consists of a $400 million revolver and a $600 million term loan A, the release said.

Upon closing, the joint venture intends to pursue a proposed initial public offering of common units.

The joint venture will be created through the sale by Hess of its 50% interest in its Bakken midstream assets to Global Infrastructure Partners for cash consideration of $2,675,000,000.

Proceeds from the term loan A will be distributed equally to both partners, resulting in total after-tax cash proceeds, net to Hess, of $3 billion.

Closing is expected early in the third quarter, subject to customary conditions.

Hess Infrastructure Partners is a midstream company.

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