Brookfield's Major Investment in Colonial Enterprises Portfolio
Brookfield Infrastructure Partners Expands Portfolio with Colonial Enterprises
Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN) has recently made headlines with its exciting acquisition of Colonial Enterprises. This well-known midstream asset portfolio includes the significant Colonial Pipeline and is valued at an impressive $9 billion or approximately 9x EBITDA. Colonial stands out for operating the largest refined products system in the U.S., which stretches about 5,500 miles from Texas to New York. This acquisition underscores Brookfield's commitment to investing in robust infrastructure that serves a high-quality customer base along the East Coast.
Investment Insights from Brookfield
Upon the closure of this transaction, Brookfield Infrastructure is set to invest $500 million in equity, reflecting around 15% of the total equity required for this venture. This funding will be sourced entirely from recent capital recycling initiatives, showcasing the firm's strategy to allocate resources wisely while enhancing its overall portfolio. The anticipated closing of this acquisition is set for the latter half of 2025, pending the fulfillment of traditional closing conditions.
Financial Backing and Advisory Team
A robust debt financing arrangement has been facilitated by Morgan Stanley Senior Funding, Inc. and Mizuho Bank, Ltd. Notably, Morgan Stanley is acting as the sole bookrunner for the term loan facility. In navigating this substantial transaction, Brookfield Infrastructure has engaged esteemed partners such as Jefferies LLC and Greenhill & Co. LLC as financial advisors, along with noted legal counsel from Kirkland & Ellis LLP.
About Brookfield Infrastructure
Brookfield Infrastructure is recognized as a leading global infrastructure firm, owning a variety of high-quality, long-life assets across sectors like utilities, transport, midstream, and data. The firm emphasizes investments that generate consistent and predictable cash flows through contracted and regulated revenue models. Investors can participate in Brookfield's expansive portfolio via Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN) or Brookfield Infrastructure Corporation (NYSE, TSX: BIPC).
Brookfield's Legacy and Vision
Brookfield Infrastructure operates under the umbrella of Brookfield Asset Management, a prominent global alternative asset manager based in New York. The asset manager oversees over $1 trillion in assets, driving Brookfield's vision of focusing on essential and resilient infrastructure. By continually expanding its footprint in strategic areas, Brookfield aims to deliver value and stability to its investors.
Contact Information for Inquiries
For inquiries regarding media or investor relations, please reach out to:
Media Contact: John Hamlin, Director of Communications, Tel: +44 204 557 4334, Email: john.hamlin@brookfield.com
Investor Relations: Stephen Fukuda, Senior Vice President of Corporate Development, Tel: +1 416 956 5129, Email: stephen.fukuda@brookfield.com
Frequently Asked Questions
What is the significance of the Colonial Enterprises acquisition?
This acquisition enhances Brookfield Infrastructure's portfolio by incorporating a vital midstream asset that is integral to the refined products network in the U.S.
How much is Brookfield investing in this deal?
Brookfield is committing $500 million, representing about 15% of the total equity needed for the acquisition.
When is the transaction expected to close?
The acquisition is anticipated to finalize in the second half of 2025, pending customary closing conditions.
Who are the financial advisors involved in this transaction?
The financial advisory team includes Jefferies LLC and Greenhill & Co. LLC, with legal counsel provided by Kirkland & Ellis LLP.
What does this acquisition mean for Brookfield's future?
This deal emphasizes Brookfield's growth strategy and its commitment to investing in high-quality infrastructure that assures stable returns for its investors.
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