Kinder’s $1bn surprise

Kinder Morgan Energy Partners has completed a near $1bn takeover swoop for IPO hopeful American Petroleum Tankers and Blackstone stablemate State Class Tankers.
Robert Kurz

Robert Kurz

The deal will see the division of the US energy giant take control of five trading vessels under the APT brand and four newbuildings booked by SCT.

Kinder Morgan says the move for the companies, controlled by Blackstone Group and Cerberus Capital Management, is worth $962m.

John Schlosser, president of KMP’s Terminals segment, explained: “This is a strategic and complementary extension of our existing crude oil and refined products transportation business.

“Product demand is growing and sources of supply continue to change, in part due to the increased shale activity. As a result, there is more demand for waterborne transportation to move these products. We are purchasing tankers that provide stable fee-based cash flow through multi-year contracts with major credit worthy oil producers.”

As part of the deal the buyer has injected $214m to fund the completion of the four SCT newbuildings on order at General Dynamics’ NASSCO Shipyard.

Sean Klimczak, senior managing director at Blackstone, said: “We have enjoyed our partnership with APT’s management team and wish them continued success with Kinder Morgan in this next phase of APT’s growth.”

IPO mystery

The takeover comes only a month after Robert Kurz-led APT reactivated efforts to list in the New York a week after mysteriously abandoning the float.

The first draft of the company’s IPO prospectus was filed with securities regulators over the summer and a series of revised editions followed not long after.

When APT filed a fourth update on 31 October it was widely believed a listing would be sealed by year-end, which is why many were caught off guard when it pulled the plug two weeks later.

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