30 Jan 2020listing compliance notice▼ BadMajor
Hess Midstream Operations LP terminated the registration of a class of securities, ending its reporting obligation for them.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
17 Dec 2019asset acquisition disposition● NeutralMajor
On December 16, 2019, the restructuring agreed in October 2019 closed: the old public partnership merged with a new entity, Hess Midstream LP (New HESM), and survived as a subsidiary renamed Hess Midstream Operations LP. Public unitholders' stake now sits in New HESM, and the sponsors' (Hess Investments North Dakota and GIP) units became Class B units. The partnership also signed new $1,000.0 million five-year revolving and $400.0 million five-year term loan credit facilities with JPMorgan Chase as agent, and an amended omnibus agreement with Hess. This resolves the open restructuring and merger thread. The excerpt is truncated, so the rest of the items (listing change, share issuance, use of the senior notes proceeds) are not covered here.
17 Dec 2019listing compliance notice● NeutralMajor
Hess Midstream Operations LP's exchange filed to remove a class of its securities from listing.
10 Dec 2019debt financing● NeutralMajor
On December 10, 2019, the partnership closed a $550 million offering of 5.125% senior notes due 2028 (sold at par). The press release says the proceeds will fund the acquisition of Hess Infrastructure Partners, including repaying HIP's credit facility borrowings and part of the distribution to HIP's sponsors. This funds the October 2019 restructuring. If the restructuring is not completed by March 31, 2020 (at the latest April 17, 2020), or the partnership announces it will not happen, the notes must be redeemed at the initial issue price plus accrued interest. Per the filing the proceeds are not held in escrow.
4 Oct 2019capital raising announcement● NeutralMajor
On October 3, 2019, the partnership agreed a restructuring with Hess and GIP: a new corporation-taxed entity, New HESM, would replace it as the publicly traded company, and each public common unit would convert into one New HESM Class A share. The partnership would acquire Hess Infrastructure Partners (HIP) from Hess and GIP, which would then hold a 93.68% economic interest in the operating partnership and share a one-time cash distribution of about $549.3 million. Public holders would get a 6.0% voting and 95.0% economic interest in New HESM, equal to an indirect 6.0% interest in the operating business, while Hess and GIP would hold 94.0% of the votes. It needs an effective S-4 registration, NYSE listing and other conditions, and either side can terminate if it is not completed by March 31, 2020. This is a pending deal, so the public unitholders' final position is not yet settled.
21 Sept 2018material agreement▲ GoodMajor
On September 17, 2018, the partnership's subsidiaries amended its gas processing and gas gathering contracts with Hess Trading Corporation so they also cover the Little Missouri Four (LM4) plant, being built by Targa and held in a 50/50 joint venture with Hess TGP Operations LP, in which the partnership owns a 20% economic interest. The fee formulas now also take into account revenue from third-party production, starting January 1, 2019, and the gathering contract term for the Goliath subsystem is extended five years to December 31, 2028. The terms were approved by the conflicts committee of independent directors.
10 Apr 2017asset acquisition disposition● NeutralMajor
The IPO of Hess Midstream Partners LP closed on April 10, 2017: 14,780,000 common units sold at $23.00 each, with the underwriters also taking up their full option of 2,217,000 extra units on April 5. The partnership received about $365.5 million after underwriting discounts and structuring fees (before offering expenses). It plans to use the money for a distribution to the Hess and GIP sponsors (reimbursing pre-IPO capital spending), revolving credit facility fees, and general purposes including expansion spending and working capital. At closing it also signed an omnibus agreement and an employee secondment agreement with Hess (Hess staff are lent to run the assets, and the partnership reimburses the costs), plus a registration rights agreement with the sponsors. The filing text is cut off after that point.
4 Apr 2017listing compliance notice▲ GoodMajor
the New York Stock Exchange certified Hess Midstream Operations LP's securities for listing, clearing them to begin trading.