Global Infrastructure Partners (GIP), a leading global, independent infrastructure investor, announced today that its credit fund, GIP Spectrum Fund, L.P., along with its affiliates and co-investors (together “GIP Spectrum”, “Spectrum” or the “Fund”), has closed on the purchase of $325 million of an aggregate $400 million senior secured bullet notes (the “Notes”) in Whistler Pipeline, LLC (“Whistler Pipeline” or the “Project”). Whistler Pipeline is a greenfield, approximately 500‐mile, 2.0 Bcf/d natural gas pipeline that will connect the Permian Basin to the Agua Dulce hub near Corpus Christi, Texas. The Project is underpinned by long term, contractual minimum volume agreements from investment grade customers and represents critical natural gas takeaway infrastructure from the prolific Permian Basin. The Project will provide Permian producers direct access to the South Texas markets, as well as liquefied natural gas (“LNG”) and Mexican export markets.
Proceeds from the Notes, together with a senior secured bank term loan, senior secured amortizing note and common equity from Whistler Pipeline’s consortium of owners, consisting of MPLX LP (NYSE: MPLX), WhiteWater Midstream (“WhiteWater”) and a joint venture between Stonepeak Infrastructure Partners and West Texas Gas, will fund construction of the Project. The Whistler Pipeline is expected to be in-service in the third quarter of 2021. The Project was developed by WhiteWater, an Austin-based independent midstream company that provides transportation services to domestic oil and gas plays. Founded in 2016, WhiteWater currently manages $3 billion in gas transmission assets originating in the Permian Basin.
The Whistler Pipeline transaction represents GIP Spectrum’s inaugural investment. The Spectrum strategy provides customized credit financings for infrastructure issuers in GIP’s core sectors of midstream energy, power, renewables and transport, while leveraging GIP’s significant operating expertise. “We are very pleased to have entered into this transaction with Whistler Pipeline and its sponsors, MPLX, WhiteWater, Stonepeak and WTG,” said Jennifer Powers, GIP Partner and Chair of GIP Credit. “The Project will provide a critical connection that will alleviate the constraints for takeaway capacity out of the Permian Basin. This investment exemplifies GIP Spectrum’s ability to provide unique credit solutions in size for high quality, essential infrastructure projects, and move quickly to efficiently conduct due diligence even during these unprecedented market conditions.”
“WhiteWater remains incredibly excited about Whistler. Closing the debt financing in the current market environment is a testament to the quality of the project and the efforts of all our partners. We are excited to be the first investment in the GIP Spectrum Fund and appreciate the creativity and support of the GIP Credit team to help make this financing a success” said Scott Simmons, Senior Vice President and Chief Financial Officer of WhiteWater Midstream.