S&C is advising long-time client Sempra on concurrent multibillion-dollar transactions. In the first transaction, a subsidiary of Sempra Infrastructure Partners entered into a joint venture with a consortium of private capital funds led by Blackstone Credit & Insurance, along with Apollo, KKR and Goldman Sachs Alternatives, for the development, construction and operation of the second phase of the Port Arthur LNG project. The investors received 49.9 percent of the joint venture’s equity for $7 billion, with $3.4 billion funded upfront and the remainder during construction. The equity contributions will support $14 billion in capital expenditures for the project’s development.
In the second transaction, Sempra agreed to sell 45 percent of its equity interests in its growth platform, Sempra Infrastructure Partners, to an investment entity owned by affiliates of Kohlberg Kravis Roberts & Co. and Canada Pension Plan Investment Board for approximately $10 billion. The transaction values Sempra Infrastructure Partners at an enterprise value of $31.7 billion.
These transactions represent a continuation of S&C’s work advising Sempra in its financing and project development activities, including the development of the Port Arthur LNG Phase 1 project and other financings.
The core S&C team advising on both transactions was led by Inosi Nyatta and Mimi Wu.