22 Feb 2016capital raising announcement● NeutralMajor
On Feb 17, 2016 (closed Feb 22) Rice Midstream Holdings and a new subsidiary, Rice Midstream GP Holdings, sold $375.0M of senior Series B preferred units (8% yearly distributions) and an 8.25% limited partner interest in GP Holdings to EIG funds in a private placement. Rice Midstream Holdings can call on up to $125.0M more from EIG after Sept 30, 2016 and before the 18-month mark, subject to conditions. Its Rice Midstream Partners units (3,623 common, 28,753,623 subordinated and the incentive distribution rights) were moved into GP Holdings first. EIG can force a $125.0M buyback of its GP Holdings units on a change of control or if no qualifying IPO of GP Holdings occurs within five years, and can require redemption of the Series B units from the tenth anniversary. Rice Midstream Holdings' credit facility was also amended (Feb 19, 2016); the filing text is cut off before listing all changes.