The Latest Permian Basin Sale Totaled $1.75 billion in cash

A week doesn’t go by when another big sale is announced about holdings in the Permian Basin.

This week’s is a $1.75 billion cash deal in which Brazos Midstream Holdings LLC of Fort Worth and its financial sponsor Old Ironsides Energy have entered into an agreement to sell their Delaware Basin subsidiary companies to North Haven Infrastructure Partners II.

NHIP II is an investment fund managed by Morgan Stanley Infrastructure and the closing is expected in the second quarter of 2018. The transaction includes debt financing of $950 million underwritten and arranged by Jefferies Finance LLC and Royal Bank of Canada, according to the announcement.

Following the closing of the agreement, Brazos will keep its name and operate as a portfolio company of NHIP II and the management team at Brazos will stay in their current roles.

“I am proud of what the Brazos team has accomplished in three short years,” said Brad Iles, Brazos CEO. “We have built best-in-class assets in one of the most prolific and economic oil and gas producing regions in the United States. We are thankful for MSI’s commitment to our team and with their support we will continue to aggressively expand our business to serve our customers’ rapidly growing needs.”