HOUSTON – Bracewell LLP represented Alinda Capital Partners and its co-seller in a definitive agreement to sell SourceGas Holdings LLC to Black Hills Corp. for $1.89 billion.
SourceGas operates four regulated natural gas utilities serving approximately 429,000 customers in Arkansas, Colorado, Nebraska and Wyoming and a 512-mile regulated intrastate natural gas transmission pipeline in Colorado. Black Hills Corp. now serves more than 1.2 million natural gas and electric utility customers in nearly 800 communities in eight Rocky Mountain and Midcontinent states.
The agreement for a total consideration of approximately $1.89 billion includes an assumption of $760 million of debt. The transaction was financed by equity common shares and equity units issued November 23, 2015, a debt offering completed January 13, 2016, and short-term borrowings. SourceGas will operate under the Black Hills Energy name, with rebranding activities beginning in March.
Bracewell attorneys involved in this deal included:
Partners: G. Alan Rafte, Elizabeth L. McGinley, Rebecca L. Baker and Daniel E. Hemli
Senior Counsels: Vivian Y. Ouyang and Allison K. Perry
Counsel: Jacqueline R. Java
Associates: Aaron N. Carpenter, Christopher J. Miller and Rebekah T. Scherr