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.