Westlake Chemical Partners LP’s $62.9 Million Private Placement

Vinson & Elkins and Baker Botts advised on the transaction

Westlake Chemical Partners LP (NYSE: WLKP) (the “Partnership”) announced that it has agreed to issue and sell in a private placement 2,940,818 common units representing limited partner interests in the Partnership for gross proceeds of approximately $62.9 million, or $21.40 per common unit.

The Partnership intends to use the proceeds from the private placement, along with borrowings under its revolving credit facility, to fund its obligations under the concurrently announced acquisition of an additional 4.50% limited partner interest in Westlake Chemical OpCo LP (“OpCo”), which will increase the Partnership’s limited partner interest in OpCo to approximately 22.8% (the “OpCo Equity Purchase”). OpCo intends to use the proceeds it receives from the OpCo Equity Purchase to repay borrowings under its intercompany debt agreements with Westlake Chemical Corporation.

Barclays Capital Inc. acted as placement agent in connection with the private placement.

WLKP is a limited partnership formed by Westlake Chemical Corporation to operate, acquire and develop ethylene production facilities and other qualified assets. Headquartered in Houston, Texas, WLKP, following the closing of the OpCo Equity Purchase described above, is expected to own an approximately 22.8% limited partner interest in OpCo. OpCo’s assets consist of three ethylene production facilities in Calvert City, Kentucky, and Lake Charles, Louisiana, and an ethylene pipeline.

Baker Botts represented Barclays Capital Inc. in connection with the private placement with a team including Josh Davidson (Picture, Houston), Carina Antweil (Senior Associate, Houston), Lakshmi Ramanathan (Associate, Houston) and Steven Lackey (Associate, Houston).

Involved fees earner: Carina Antweil – Baker Botts; Joshua Davidson – Baker Botts; Steven Lackey – Baker Botts; Lakshmi Ramanathan – Baker Botts;

Law Firms: Baker Botts;

Clients: Barclays Capital ;


Author: Ambrogio Visconti