CorEnergy Infrastructure Trust, Inc.: M&A transaction — CorEnergy closes $177.6M sale of MoGas/Omega pipelines; warns of delisting and convertible note risk

CorEnergy Infrastructure Trust, Inc.

Sale to Spire Midstream for $177.6M cash; net proceeds ~$165M after taxes and costs; used $109M to repay Crimson credit facility.
Crimson pipeline now sole remaining operation; running cash flow deficits due to underpriced tariffs and volume declines.
NYSE delisting notice appealed; if not resolved, $118M convertible senior notes become due and company lacks resources to pay.
Pro forma net loss attributable to common stockholders widened to $32.2M (2022) and $23.8M (nine months 2023) after removal of MoGas results.
Company evaluating Crimson asset write-downs and corporate cost reductions; expects retroactive rate increases in California.

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.9

CorEnergy Infrastructure Trust, Inc. completed a disposition involving Spire Midstream Services, LLC for $177.6 million (closed 2024-01-19).

Action: disposition
Counterparty: Spire Midstream Services, LLC
Consideration: $177.6 million
Closing: 2024-01-19

Exact text from the filing

On January 19, 2024, CorEnergy Infrastructure Trust, Inc. (the "Seller"), completed the previously announced sale of its MoGas pipeline, Omega pipeline, and related businesses to Spire Midstream Services, LLC (the "Purchaser") pursuant to that certain Membership Interest Purchase Agreement, dated May 24, 2023, by and between Seller and Purchaser (the "Purchase Agreement"), for cash consideration of $177.6 million, which includes certain closing adjustments.

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Source: SEC EDGAR

accession 0001347652-24-000006

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