Williams Completes Acquisition Of GP And LP Interests In Access Midstream

(RTTNews) - Williams Companies, Inc. (WMB) said Tuesday that it has completed the previously announced acquisition of the 50% general partner interest and 55.1 million limited partner units in Access Midstream Partners, L.P. (ACMP) previously held by Global Infrastructure Partners II for $5.995 billion in cash.

Williams now owns 100% of the general partner and about 50% of the limited partner units in Access Midstream Partners.

As previously announced, Williams is proposing the merger of Williams Partners L.P. (WPZ) with and into Access Midstream Partners, L.P. Williams is proposing that the entities merge in a unit-for-unit exchange at a ratio of 0.85 Access Midstream Partners units per Williams Partners unit. The proposal also includes an option for Williams Partners unitholders to take either a one-time special payment of $0.81 per unit, or an equivalent value of additional common units of Access Midstream Partners, to compensate for a lower expected per-unit LP cash distribution in 2015.

Assuming the merger is completed in 2014, the merged MLP is expected to have a 2015 distribution increase of at least 25% above Access Midstream Partners' current guidance of $2.79 per unit, which represents an increase of more than 40 percent above current 2014 distribution guidance.

The proposed merger terms will be subject to negotiation, review and approval by conflicts committees of each partnership's full board of directors as well as approval by each partnership's board of directors. The conflicts committees, comprised solely of independent board members, have retained legal and financial advisors.