March 09, 2020 [Tank News International] – Shell Midstream Partners has announced it has signed a deal with Shell (its general partner) to eliminate all incentive distribution rights and economic general partner interest in the company.
In the same announcement, Shell Midstream also said it agrees to buy Royal Dutch Shell’s 79 per cent interest in the 300K bbl/day Mattox pipeline and certain logistics assets at the Shell Norco manufacturing complex.
It said that in exchange for the assets and the elimination of IDRs, the sponsor will receive 160M of newly-issued SHLX common units, as well as $1.2B of Series A perpetual convertible preferred units at $23.63/unit.
Kevin Nichols, Shell Midstream CEO, said: “the transaction simplifies the company’s structure and lowers its cost of capital.”
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