Williams Partners Closes Acquisition Of Williams' Canadian Assets For $1.2 Bln

(RTTNews) - Energy infrastructure company Williams Partners L.P. (WPZ) announced that it has completed the transaction to acquire Williams Cos. Inc.'s (WMB) currently in-service Alberta, Canada operations for $1.2 billion.

The assets include an oil sands offgas processing plant near Fort McMurray, approximately 260 miles of NGL and olefins pipelines, as well as an NGL/olefins fractionation facility and butylene/butane splitter facility at Redwater. Williams Partners also acquired an in-progress expansion project at the Redwater facility.

Williams Partners expects the addition of these assets via this acquisition will be accretive to distributable cash flow, on a per-unit basis for the partnership's unitholders.

Williams Partners said it funded the acquisition with the issuance to Williams of 25.6 million Class D payment-in-kind (PIK) limited-partner units, $25 million in cash and an increase to the general partner's capital account to maintain Williams' 2 percent general-partner interest.

Upon conversion of the PIK units, Williams expects to gain increased distributions from Williams Partners. The increased distributions from Williams Partners support Williams' dividend growth strategy. Following this transaction, Williams owns about 66 percent of Williams Partners, including the general-partner interest.

On 26th February, Williams Partners L.P. agreed to acquire Williams Cos. Inc.'s currently in-service Alberta, Canada operations for $1.2 billion.