Husky Energy sells partial interest in select midstream assets for C$1.7bn

July 15, 2016

Client: CIBC

Represented CIBC as lead arrangers in the credit agreement in connection with the C$1.7bn leveraged acquisition of select midstream assets from Husky Energy Inc. by Cheung Kong Infrastructure Holdings Limited (CKI) and Power Assets Holdings Limited (PAH). On the closing date, the Investors paid $1.155bn as consideration for their limited partnership interests. HOOL contributed the midstream assets to Midstream LP in exchange for its limited partnership interest and approximately C$1.7bn cash, of which C$564m was borrowed by Midstream LP under a new senior secured credit agreement entered into on the closing date. In addition to the C$564m non-revolving acquisition term loan facility, the credit agreement provided for a C$25m revolving operating facility and a C$336m non-revolving delayed draw development term loan facility (for aggregate facilities of C$925m).