Simpson Thacher is representing KKR in a preferred equity investment in Genesis Energy, L.P. (“Genesis”) in connection with Genesis’s announced acquisition of all of Tronox Limited’s trona and trona-based exploring, mining, processing, producing, marketing and selling business for approximately $1.325 billion. Investment vehicles affiliated with KKR and GSO Capital Partners LP (“GSO”) agreed to collectively purchase approximately $750 million of Genesis’s 8.75% Class A Convertible Preferred Units. KKR and GSO will acquire approximately 22.2 million units at a price of $33.71 per unit. The acquisition and the sale of the preferred units are subject to customary closing conditions, including obtaining regulatory approvals. The acquisition and sale is expected to close in the second half of 2017.
Genesis is a diversified midstream energy master limited partnership which has operations in offshore pipeline transportation, onshore facilities and transportation, refinery services and marine transportation located primarily in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida, Wyoming and the Gulf of Mexico.
The Simpson Thacher team includes Breen Haire, Austen Heim, Kyle Kreshover and Andrew Lanius (M&A); Jonathan Lindabury and Mimi Cheng (Corporate); Nancy Mehlman and Michael Badain (Tax); Michael Isby (Environmental); and David Rubinsky and Patricia Adams (Employee Benefits and Executive Compensation).