other material
confidence high
sentiment positive
materiality 0.80
Comstock Resources sells 27% stake in midstream subsidiary Pinnacle to Sixth Street for $600M
COMSTOCK RESOURCES INC
- Sixth Street invests $600M for 27% non-controlling equity interest in Pinnacle Gas Services; Comstock retains 73% control.
- Transaction values Pinnacle at $2.2B enterprise value; proceeds used to retire $445M preferred equity plus all Pinnacle debt.
- Comstock expects to reduce Pinnacle fixed charges by ~$40M per year.
- Comstock's ownership can increase to 80.5% after Sixth Street achieves return hurdles.
- Comstock continues to manage and operate Pinnacle under management services agreement.