CenterPoint Energy, Inc. today announced it has entered into an agreement to sell its natural gas retail business, CenterPoint Energy Services, Inc. (CES) to Energy Capital Partners, LLC, a private equity and credit investor specializing in energy infrastructure projects, for total consideration of approximately $400 million, including estimated working capital at close, subject to the satisfaction of customary terms and conditions. A team from Akin Gump advised CenterPoint Energy in the transaction.
As part of the deal, which is expected to close in the second quarter of the year, CES will enter into a structured long-term Preferred Supply agreement where Shell Energy North America (US), L.P. will provide gas supply and collateral support, as well as receive equity warrants. Net proceeds of the sale will be used to repay a portion of outstanding CenterPoint Energy debt.
To learn more about the deal, please click here.
The Akin Gump M&A team advising CenterPoint included partner Rob Shearer, counsel Mary Lovely and associate Lisa Garrett. They were joined by partner Frederick Lee and counsel Charles Hely for finance aspects of the transaction, and partner Gabriel Procaccini and associate Hayden Harms for midstream work.
Other team members included:
- Senior counsel Vera Neinast on regulatory matters.
- Partner Mike Warnecke and senior counsel Stacy Kobrick on antitrust.
- Senior counsel Richard Frank and practice attorney Stuart Graves on real estate.
- Partners Bob Lian and Brian Patterson and counsel Courtney Stahl on labor and employment.
- Partner Jocelyn Tau and associate Michael Farrell on tax.
- Partner Rolf Zaiss and counsel Madeline Lewis on employee benefits and executive compensation.
- Partner David Quigley and senior counsel Andrew Oelz on environment and natural resources issues.
- Senior counsel David Lee on intellectual property.