GE Takes Controlling Stake in Regency Energy Partners
GE Energy Financial Services, a unit of General Electric, said Tuesday it bought a $603 million stake in Regency Energy Partners, a natural gas processor and distributor, from HM Capital Partners for $603 million.
GE Energy Financial acquired 91% of Regency's general partner and 16.7 million subordinated units from HM Capital, a Dallas-based private equity firm.
GE Energy Financial also acquired 1.1 million of the company's subordinated units from members of Regency's management.
The deal gives GE Energy Financial about 37% of the outstanding limited partner units.
Regency's management now owns the balance of the general partner and 1.2 million subordinated units.
Affiliates of HM Capital elected to retain more than 8 million of the common limited partner units, making them the second largest investor in Regency, GE said.
Goldman, Sachs & Co. and Vinson & Elkins LLP advised GE Energy Financial, while Lehman Brothers and Hughes & Luce LLP advised HM Capital.