Summary
Phillips 66 (PSX) announced the successful completion of its acquisition of all publicly held Common Units of DCP Midstream, LP (DCP) on June 15, 2023. This transaction, structured as a merger, involved PSX's indirect wholly owned subsidiary, Dynamo Merger Sub LLC, merging with DCP. The deal saw each Public Common Unit of DCP converted into $41.75 in cash, without interest. This acquisition significantly increases Phillips 66's economic interest in DCP from 43.3% to 86.8%. The funding for this acquisition was managed through a combination of existing cash on hand, proceeds from senior unsecured debt securities issued in March 2023, and a planned $1.25 billion draw from a delayed term loan facility. Investors should note that the Sponsor Owned Units of DCP remain unaffected by the merger.
Key Highlights
- 1Phillips 66 has completed the acquisition of DCP Midstream, LP.
- 2The transaction was structured as a merger where DCP survived as a Delaware limited partnership.
- 3Public common unitholders of DCP received $41.75 per common unit in cash.
- 4Phillips 66's economic interest in DCP increased substantially from 43.3% to 86.8%.
- 5The acquisition was funded using cash on hand, prior debt issuance proceeds, and a pending draw on a term loan.
- 6DCP's Sponsor Owned Units were not acquired and remain outstanding.