Blackstone Infrastructure Partners’s Acquisition Of Class A Shares From Tallgrass Energy

Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC served as financial advisors and Vinson & Elkins L.L.P. acted as legal advisor to Blackstone Infrastructure Partners. Latham & Watkins LLP acted as legal advisor to Enagas. Sidley Austin LLP acted as legal advisor to GIC. Evercore Group LLC served as the financial advisor and Bracewell LLP acted as legal advisor to the Conflicts Committee of the Board of Directors of TGE’s General Partner. Baker Botts L.L.P. acted as legal advisor to TGE.

Tallgrass Energy, LP (NYSE: TGE) announced that it has entered into a definitive merger agreement pursuant to which affiliates of Blackstone Infrastructure Partners together with affiliates of Enagas, GIC, NPS and USS will acquire all of the publicly-held outstanding Class A Shares of TGE for $22.45 in cash per Class A Share.

The transaction is expected to close in the second quarter of 2020, subject to the satisfaction of customary conditions, including approval of the merger by holders of a majority of the outstanding Class A and Class B Shares of TGE, voting together as a single class, inclusive of the approximately 44 percent of the total Class A and Class B Shares held by the Sponsors. Upon closing of the transaction, the Class A Shares will cease to be publicly traded. Pursuant to the merger agreement, TGE has agreed not to pay distributions during the pendency of the transactions contemplated by the merger agreement.

The Conflicts Committee of the Board of Directors of Tallgrass Energy GP, LLC, TGE’s General Partner (“TGE GP”), after consultation with its independent legal and financial advisors, unanimously approved the transaction and determined it to be in the best interests of TGE and its public shareholders.

The Sponsors expect to fund the purchase of the Class A Shares with approximately $3 billion of equity, with the remainder of the funding necessary to consummate the transaction provided by debt.

The Sidley team was led by Asi Kirmayer (Picture), Ayo Badejo, Laura Barzilai, Ram Burshtine, Zackary Pullin, Immanuel Kim and Lucy Liu.

The V&E corporate team was led by partners Lande Spottswood, Keith Fullenweider, Alan Beck and Ryan Carney, with assistance from senior associates Crosby Scofield and Claire Campbell and associates Alex Robertson, Leslie Vaughn, David Bumgardner, Audrey Bartosh, Kelly King and Charlie Fitzpatrick. Debt financing for the transaction was led by partner David Wicklund and associates Caitlin Snelson and Derrik Sweeney. Also advising were partner John Lynch, senior associate Allyson Seger and associate Andrew Mandelbaum; partner Shane Tucker and associate Gina Hancock; senior associate Chris Mathiesen; partner Neil Imus and associate Ryan Will; partner Sean Becker; partner Larry Nettles, senior associate Matthew Dobbins and associate Jennifer Cornejo; and counsel Damien Lyster and associate Tray Smith.

Bracewell lawyers involved in the transaction included Partners Troy L. Harder, Gary W. Orloff, Heather L. Brown, Daniel E. Hemli and Tony L. Visage, Counsel Jennifer N. Dill, Associates Sarah Ashley Byrd and Andrew W. Monk.

Baker Botts team involved Mollie Duckworth, Rachel Ratcliffe, Grace Matthews, Daniel Tristan, Luke Weedon, Mark Bodron, Allison Lancaster, Jenna Kabrich and Jon Nelsen.

Involved fees earner: Mark Bodron – Baker Botts; Mollie Duckworth – Baker Botts; Jenna Kabrich – Baker Botts; Allison Lancaster – Baker Botts; Grace Matthews – Baker Botts; Jon Nelsen – Baker Botts; Rachel Ratcliffe – Baker Botts; Daniel Tristan – Baker Botts; Luke Weedon – Baker Botts; Heather Brown – Bracewell; Sarah Ashley Byrd – Bracewell; Jennifer Dill – Bracewell; Troy Harder – Bracewell; Daniel Hemli – Bracewell; Andrew Monk – Bracewell; Gary Orloff – Bracewell; Tony Visage – Bracewell; Ayo Badejo – Sidley Austin LLP; Laura Barzilai – Sidley Austin LLP; Ram Burshtine – Sidley Austin LLP; Immanuel Kim – Sidley Austin LLP; Asi Kirmayer – Sidley Austin LLP; Lucy Liu – Sidley Austin LLP; Zackary Pullin – Sidley Austin LLP; Audrey Bartosh – Vinson & Elkins LLP; Alan Beck – Vinson & Elkins LLP; Sean Becker – Vinson & Elkins LLP; David Bumgardner – Vinson & Elkins LLP; Ryan Carney – Vinson & Elkins LLP; Jennifer Cornejo – Vinson & Elkins LLP; Matthew Dobbins – Vinson & Elkins LLP; Charles Fitzpatrick – Vinson & Elkins LLP; Keith Fullenweider – Vinson & Elkins LLP; Gina Hancock – Vinson & Elkins LLP; Neil Imus – Vinson & Elkins LLP; Kelly King – Vinson & Elkins LLP; John Lynch – Vinson & Elkins LLP; Damien Lyster – Vinson & Elkins LLP; Christian Mathiesen – Vinson & Elkins LLP; Larry Nettles – Vinson & Elkins LLP; Alex Robertson – Vinson & Elkins LLP; Crosby Scofield – Vinson & Elkins LLP; Allyson Seger – Vinson & Elkins LLP; Tray Smith – Vinson & Elkins LLP; Claire Smyser Campbell – Vinson & Elkins LLP; Caitlin Snelson – Vinson & Elkins LLP; Lande Alexandra Spottswood – Vinson & Elkins LLP; Derrik Sweeney – Vinson & Elkins LLP; Shane Tucker – Vinson & Elkins LLP; Leslie Vaughn – Vinson & Elkins LLP; David Wicklund – Vinson & Elkins LLP; Ryan Will – Vinson & Elkins LLP;

Law Firms: Baker Botts; Bracewell; Sidley Austin LLP; Vinson & Elkins LLP;

Clients: Blackstone Real Estate Partners; GIC Singapore Investment Corporation; Tallgrass Development, LP; Tallgrass Energy LP – Conflicts Committee of the Board of Directors;

Author: Ambrogio Visconti