|Hess Midstream Partners LP Announces Pricing of Upsized Initial Public Offering|
HOUSTON--( BUSINESS WIRE )--Hess Midstream Partners LP (the "Partnership") today announced the pricing of its initial public offering of 14,780,000 common units representing limited partner interests in the Partnership, at a public offering price of $23.00 per common unit. The Partnership was initially offering 12,500,000 common units at an estimated price range of $19.00 to $21.00 per common unit. In addition, the Partnership has granted the underwriters a 30-day option to purchase up to an additional 2,217,000 common units at the initial public offering price. The common units are expected to begin trading on April 5, 2017 on the New York Stock Exchange under the ticker symbol "HESM." The offering is expected to close on April 10, 2017, subject to customary closing conditions.
Upon closing, the public will hold an approximate 26.5 percent limited partner interest in the Partnership, or an approximate 30.5 percent limited partner interest if the underwriters exercise in full their option to purchase additional common units. Hess Corporation ("Hess"), through certain of its subsidiaries, and Global Infrastructure Partners II and its affiliates ("GIP") will each own 50 percent of the remaining limited partner interest in the Partnership, and Hess Infrastructure Partners LP, a joint venture 50 percent owned by Hess and 50 percent owned by GIP, will own all of the equity interests in the Partnership's general partner and all of the Partnership's incentive distribution rights.
Goldman, Sachs & Co., Morgan Stanley, Citigroup, J.P. Morgan, MUFG and Wells Fargo Securities are acting as book-running managers for the offering and Barclays, HSBC, ING Financial Markets, Scotia Howard Weil, SMBC Nikko and TD Securities are acting as co-managers for the offering. The offering of these securities is being made only by means of a written prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. A copy of the prospectus may be obtained from:
Goldman, Sachs & Co.
Morgan Stanley & Co. LLC
Wells Fargo Securities
HSBC Securities (USA) Inc.
ING Financial Markets LLC
Scotia Capital (USA) Inc.
SMBC Nikko Securities America, Inc.
TD Securities (USA) LLC
A copy of the prospectus may be obtained free of charge by visiting the U.S. Securities and Exchange Commission's (the "SEC") website at www.sec.gov .
A registration statement relating to these securities has been filed with and declared effective by the SEC. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
About the Partnership
Hess Midstream Partners is a fee-based, growth-oriented, traditional master limited partnership initially formed by Hess in 2014 to own, operate, develop and acquire a diverse set of midstream assets to provide services to Hess and third-party customers. The Partnership's initial assets are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota.
About the Sponsors
Hess Corporation is a global independent energy company engaged in the exploration and production of crude oil and natural gas.
Global Infrastructure Partners is an independent infrastructure fund that invests in infrastructure assets and business across three core sectors: energy, transportation and water/waste.
Forward Looking Statements
This press release may include forward-looking statements within the meaning of the federal securities laws. Statements that do not relate strictly to historical or current facts are forward-looking. These statements contain words such as "possible," "if," "will" and "expect" and involve risks and uncertainties including, among others, that the Partnership's business plans may change as circumstances warrant and securities of the Partnership may not ultimately be sold to the public because of general market conditions or other factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the Partnership's prospectus and SEC filings. The Partnership undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.