UPDATE: Inergy Climbs 8% to New 52-Week High - Inks Merger Pact with Crestwood Midstream Partners

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Inergy LP ( NRGY ) is now up 8.8% at $23.95, touching a new 52-week high of $24.64. The company and Inergy Midstream LP, along with Crestwood Midstream Partners ( CMLP ) Crestwood Holdings have agreed to create a fully integrated midstream partnership with a total enterprise value of approximately $7 billion.

The combination will be implemented through a series of transactions, which will result in Crestwood Holdings acquiring the general partner, and thus control, of Inergy L.P

The terms of the agreements are as follows: Crestwood Holdings will acquire the general partner of Inergy L.P. and will contribute the general partner and incentive distribution rights of Crestwood Midstream to Inergy L.P. in exchange for Inergy L.P. common units. Separately, Crestwood Midstream will be merged with a subsidiary of Inergy Midstream. In the merger, Crestwood Midstream unitholders will receive 1.070 common units of Inergy Midstream for each unit of Crestwood Midstream they own, representing a 5% premium to the 20-day volume weighted average price of Crestwood Midstream's common units.

Additionally, all Crestwood Midstream public unitholders other than Crestwood Holdings will receive a one-time cash payment at closing of the merger of approximately $35 million in the aggregate, or $1.03 per unit, $25 million of which will be payable by Inergy Midstream and approximately $10 million of which will be payable by Crestwood Holdings. Inergy Midstream and Inergy L.P. will continue to be listed on the NYSE under the ticker symbols NRGM and NRGY, respectively.

CMLP is up 4.4% at near $24.90, off a day high $25.55 with a 52-week range of $19.90 - $29.12.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: CMLP , NRGY

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