OMERS’ $1.438 Billion Acquisition of 50% interest in BridgeTex

Barclays served as financial advisor for Plains, and Jefferies advised OMERS. Legal advisors included: Vinson & Elkins LLP for Plains, GableGotwals for Magellan and Sidley Austin LLP for OMERS.

Plains All American Pipeline, L.P. (NYSE: PAA), Magellan Midstream Partners, L.P. (NYSE: MMP) and OMERS, the defined benefit pension plan for municipal employees in Ontario, Canada, along with OMERS Infrastructure Management Inc., the infrastructure investment manager of OMERS, have entered into a definitive agreement whereby Plains and Magellan will collectively sell a 50% interest in BridgeTex Pipeline Company, LLC for $1.438 billion. OMERS will acquire a 30% interest from Plains and a 20% interest from Magellan, with Plains and Magellan each receiving a proportionate share of the total purchase price. Following closing, OMERS will own a 50% interest, Plains will retain a 20% interest, and Magellan will continue to operate the BridgeTex pipeline and own a 30% interest. The transaction is expected to close in the fourth quarter of 2018, subject to the satisfaction of customary closing conditions.

BridgeTex owns the BridgeTex pipeline, a 400,000 barrel-per-day crude oil pipeline system that extends from Colorado City in West Texas to Houston, with further connectivity for BridgeTex shippers to the Texas City area. At Colorado City, BridgeTex pipeline sources crude oil from Plains’ Basin and Sunrise pipeline systems. BridgeTex delivers volumes into Magellan’s East Houston terminal and Magellan’s Houston crude oil distribution system with connection to refineries in Houston and Texas City as well as to marine export capabilities via Magellan’s Seabrook Logistics joint venture terminal. BridgeTex pipeline capacity is being expanded to 440,000 barrels per day by early 2019.

Vinson & Elkins advised Plains All American Pipeline, L.P. with a team including Doug Bland (Picture) and associate Caroline Kuehn with assistance from associate Josh Rocha and senior associate Luke Edney. Also advising were partners Todd Way and Ryan Carney and associates Brian Russell and Lauren Meyers; partner David Wicklund and associate Maya Bobbitt; partner Billy Vigdor, counsel Dan Gerkin and associate Ryan Stalnaker; partner Larry Nettles; associate Kristy Fields; partner Sean Becker; and partner Pat Mizell, counsel Carly Milner and associate Kallie Gallagher.

 

Involved fees earner: Douglas Bland – Vinson & Elkins LLP; Caroline Kuehn – Vinson & Elkins LLP; Joshua Rocha – Vinson & Elkins LLP; Luke Edney – Vinson & Elkins LLP; Todd Way – Vinson & Elkins LLP; Ryan Carney – Vinson & Elkins LLP; Brian Russell – Vinson & Elkins LLP; Lauren Messonnier Meyers – Vinson & Elkins LLP; David Wicklund – Vinson & Elkins LLP; Maya Bobbitt – Vinson & Elkins LLP; William Vigdor – Vinson & Elkins LLP; Ryan Stalnaker – Vinson & Elkins LLP; Larry Nettles – Vinson & Elkins LLP; Kristy Fields – Vinson & Elkins LLP; Sean Becker – Vinson & Elkins LLP; Patrick Mizell – Vinson & Elkins LLP; Deborah Milner – Vinson & Elkins LLP; Kallie Gallagher – Vinson & Elkins LLP;

Law Firms: Vinson & Elkins LLP;

Clients: Plains All American Pipeline L.P.;