The Williams Companies Inc. announced Friday that it will purchase 6.975 million common units from Williams Partners L.P. for approximately $250 million.
The price per common unit of $35.84 is equal to the average of the high and low trading prices of the Partnership’s common units on the New York Stock Exchange for each of the five trading days from August 19 to August 25, 2016, less a discount of 2.5% per common unit, which price per common unit was calculated using the same method and discount that initially will be used to determine the price of the common units to be issued pursuant to the Partnership’s anticipated distribution reinvestment plan.
Williams Partners plans to use the net proceeds from the private placement to repay amounts outstanding under the partnership’s credit facility and for general partnership purposes, according to a company press release.
Following completion of the transaction, Williams’ ownership interest in Williams Partners, including the general partner interest, will remain at approximately 60 percent.
