[Context: On January 4, CrownRock, a joint venture of CrownQuest Operating and Lime Rock Partners, announced a $475 million perpetual preferred equity investment from Magnetar Capital and EIG Global Energy Partners. Further details and related links are below.]
CrownRock Announces Perpetual Preferred Equity Investment
MIDLAND, Texas, Jan. 4, 2018 /PRNewswire/ — CrownRock Holdings, L.P. (“CrownRock”), an oil and gas producing joint venture of CrownQuest Operating and Lime Rock Partners, announced today that CrownRock has closed a $475 million perpetual preferred equity investment from funds managed by Magnetar Capital (“Magnetar”) and EIG Global Energy Partners (“EIG”), respectively.
CrownRock is a newly-formed holding company that wholly owns CrownRock, L.P., through which it conducts all of its oil and gas operations. The formation of CrownRock as a holding company resulted in the same ownership and voting structures in CrownRock that existed in CrownRock, L.P. immediately before the formation of the holding company.
Tim Dunn, CEO of CrownQuest Operating, commented, “We are pleased to welcome Magnetar and EIG as equity investors in CrownRock. Their investment will help support both Lime Rock and CrownQuest’s longer-term growth objectives for CrownRock.”
Jefferies LLC acted as lead financial advisor and Credit Suisse acted as financial advisor to CrownRock and Lime Rock in connection with the transaction. Vinson & Elkins L.L.P. acted as legal counsel to CrownRock, and Weil, Gotshal & Manges LLP acted as legal counsel to Magnetar and EIG.
The securities offered in this private placement have not been registered under the Securities Act of 1933 (the “Securities Act”) or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act and applicable state laws.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described herein.
CrownRock is an independent oil and natural gas company headquartered in Midland, Texas engaged in the acquisition, development, exploitation and exploration of oil and natural gas properties. The Company’s assets are located in Texas, New Mexico and Utah, and its operations are primarily focused on the development of its core Permian Basin assets.
Founded in 2005, Magnetar is a leading alternative asset manager with assets under management of $14.0 billion as of December 1, 2017. For more than 10 years, Magnetar’s team has actively invested in the North American energy markets. The firm is headquartered in Evanston, Illinois, and operates satellite offices in Houston, New York, London and Minneapolis.
EIG Global Energy Partners specializes in private investments in energy and energy-related infrastructure on a global basis and has $17.0 billion under management as of September 30, 2017. Since 1982, EIG has been one of the leading providers of institutional capital to the global energy industry, providing financing solutions across the balance sheet for companies and projects in the oil and gas, midstream, infrastructure, power and renewables sectors globally. EIG has invested over $24 billion in more than 320 portfolio investments in 36 countries. EIG is headquartered in Washington, D.C., with offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul.