Atlas Pipeline Partners, L.P. disclosed today that the earlier announced acquisition of TEAK Midstream, LLC, has already concluded and effective date of purchase is 1st of April 2013. The final payment of Atlas for TEAK is estimated to reach US$1 billion but is still in reference to the operation capital and further modifications that is based on the Purchase and Sale Contract.
Atlas Pipeline Partners' Chief Executive Officer Eugene Dubay noted, "As I mentioned in the initial announcement, we are very excited about this acquisition of TEAK Midstream. This is the right entry point into the Eagle Ford with the right infrastructure and with tremendous future growth potential. After successfully executing organic growth across all of our legacy systems, we look forward to doing the same with our new Eagle Ford assets."
The purchase of TEAK was financed with earnings from Atlas Pipeline's latest offer of 11,845,000 common limited shares together with the offer of US$400 million of Class D convertible preferred shares while the rest of the amount was completed by using the revolving credit facility of Atlas Pipeline. Under the revolving credit capacity that is included in the TEAK Midstream deal, Atlas Pipeline plans to release long term bond instruments that will be allotted to lessen the need for getting a loan.
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