Anadarko said that the transaction has no effect on its previously announced plans related to Western Gas Partners, its proposed midstream master limited partnership. Proceeds from the transaction will be used to reduce Anadarko’s acquisition related debt.
To facilitate this transaction, Anadarko had formed a subsidiary that owns or has rights to substantially all of its midstream assets. An investment entity has raised funds from a group of investors and has advanced such funds to the midstream subsidiary, on a non-recourse basis to Anadarko.
Anadarko said that it intends to further monetize the subsidiary’s assets in the future. A portion of the proceeds received from the monetization of assets will be used by the subsidiary to partially redeem the advance, with the balance of such proceeds retained by the parent firm.
Al Walker, chief financial officer of Anadarko, said: With the closing of this transaction Anadarko has successfully completed the 2007 balance sheet restoration plan it announced in conjunction with the acquisitions of Kerr-McGee and Western Gas Resources by achieving our net long term debt target of approximately $12 billion, without issuing equity.
