Crestwood Midstream Partners Secures $500 Million Preferred Equity Commitment from Strategic Investors

HOUSTON--(BUSINESS WIRE)--Crestwood Midstream Partners LP (NYSE: CMLP) (“Crestwood”) announced today that it has entered into definitive agreements with a group of strategic investors, including Magnetar Capital (“Magnetar”), affiliates of GSO Capital Partners LP (“GSO Capital”) and GE Energy Financial Services, a unit of GE (NYSE: GE) (“GE”), under which the investors have committed to purchase from Crestwood up to $500 million of newly-created Class A Preferred Units (the “Preferred Units”). Contemporaneously with the closing of the equity commitment, Crestwood sold $300 million of the Preferred Units at a price of $25.10 per unit, which represents 16% premium to the closing price of Crestwood’s common units on Monday, June 16, 2014. Net proceeds from the initial sale of Preferred Units will be used to fund on-going expansions and development projects in Crestwood’s core growth areas (including the Marcellus, Bakken, and PRB Niobrara shale plays) and to reduce outstanding borrowings under its revolving credit facility. Crestwood expects to issue $200 million of additional Preferred Units to the investors prior to September 30, 2015.