Deal Details
Elimination of Genesis Energy, L.P.’s Incentive Distribution Rights and General Partner Interest
Summary
Baird served as exclusive financial advisor to the Board of Directors of Genesis Energy, L.P.
About
Genesis Energy, L.P. (“Genesis” or the “Partnership”) (NYSE: GEL) recently announced that it has permanently eliminated its incentive distribution rights (“IDR’s”) and converted its two percent general partner interest into a non-economic interest. In exchange for the IDR’s and the two percent economic interest, the Partnership issued 20 million common units and 7 million “Waiver” units to the stakeholders of GEL’s general partner, less approximately 145,000 common and 50,000 Waiver units that have been reserved for a new deferred equity compensation plan for employees. The IDR restructuring transaction was unanimously approved by the Board of Directors of Genesis’ general partner and is effective as of December 28, 2010.Genesis is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis engages in four business segments. The Pipeline Transportation Division is engaged in the pipeline transportation of crude oil and carbon dioxide. The Refinery Services Division primarily processes sour gas streams to remove sulfur at refining operations, principally located in Texas, Louisiana, and Arkansas. The Supply and Logistics Division is engaged in the transportation, storage and supply and marketing of energy products, including crude oil and refined products. The Industrial Gases Division produces and supplies industrial gases such as carbon dioxide and syngas. Genesis’ operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida and the Gulf of Mexico.
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- Date
- October 2010
- Company
- Genesis Energy, L.P.
- Transaction
- M&A
- Sectors
- Energy
- Target Geography
- North America
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