ENLINK MIDSTREAM PARTNERS, LP (NYSE:ENLK) Files An 8-K Entry into a Material Definitive Agreement
ME Staff 8-k
ENLINK MIDSTREAM PARTNERS, LP (NYSE:ENLK) Files An 8-K Entry into a Material Definitive AgreementItem 1.01. Entry into a Material Definitive Agreement.
On June20, 2018, EnLink Midstream Partners, LP (the “Partnership”) entered into a Second Amendment to Credit Agreement and Limited Consent (the “Credit Agreement Amendment”), which amends the Credit Agreement, dated as of February20, 2014 (as modified and amended, the “Credit Agreement”), by and among the Partnership, Bank of America, N.A., as Administrative Agent, and the lenders party thereto.
The Credit Agreement Amendment amends the change of control provisions of the Credit Agreement to, among other things, designate certain affiliates of Global Infrastructure Partners (“GIP”) as Qualifying Owners (as defined in the Credit Agreement Amendment) from and after the closing of the previously announced proposed acquisition by affiliates of GIP of all of the equity interests held by subsidiaries of Devon Energy Corporation in the Partnership, EnLink Midstream, LLC, and EnLink Midstream Manager, LLC.
The foregoing description of the Credit Agreement Amendment does not purport to be complete and is qualified in its entirety by reference to the Credit Agreement Amendment, which is attached as Exhibit10.1 to this Current Report on Form8-K (this “Current Report”) and is incorporated herein by reference.
Item 2.03.Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information provided in Item 1.01 of this Current Report is incorporated herein by reference.
Item 5.02.Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Officer Appointments
On June21, 2018, the Board of Directors (the “Company Board”) of EnLink Midstream GP, LLC (the “Company”), the general partner of the Partnership, appointed Mr.Benjamin D. Lamb to Executive Vice President and Chief Operating Officer of the Company and Ms.Alaina K. Brooks to Executive Vice President, Chief Legal and Administrative Officer, and Secretary of the Company, in each case, effective as of June21, 2018. Additionally, the Board of Directors (the “Manager Board”) of EnLink Midstream Manager, LLC (the “Manager”), the managing member of EnLink Midstream, LLC (“ENLC”), appointed Mr.Benjamin D. Lamb to Executive Vice President and Chief Operating Officer of the Manager and Ms.Alaina K. Brooks to Executive Vice President, Chief Legal and Administrative Officer, and Secretary of the Manager, in each case, effective as of June21, 2018.
Benjamin D. Lamb, 39, joined the Company in December2012. Mr.Lamb has served in a number of leadership roles within the Company, most recently as Executive Vice President — North Texas and Oklahoma, and previously as Executive Vice President — Corporate Development, Senior Vice President — Finance and Corporate Development, and Vice President
— Finance. Prior to joining the Company, Mr.Lamb served as a Principal at the investment banking firm Greenhill& Co., which he joined in 2005. In that role, he focused on the evaluation and execution of mergers, acquisitions, and restructuring transactions for clients primarily in the midstream energy, power, and utility industries. Prior to joining Greenhill, he served as an investment banker at UBS Investment Bank in its Mergers and Acquisitions Group and in its Global Energy Group, and at Merrill Lynch in its Global Energy and Power Group. Mr.Lamb received his Bachelor of Business Administration from Baylor University in 2000.
Alaina K. Brooks, 44, joined the Company in 2008. Ms.Brooks has served in several legal roles within the Company, most recently as Senior Vice President, General Counsel, and Secretary, and previously as Deputy General Counsel. In Ms.Brooks’ new role, she serves on the Company’s Executive Leadership Team and leads the legal, regulatory, public and industry affairs, environmental health and safety, and human resources functions. Before joining the Company in 2008, Ms.Brooks practiced law at Weil, Gotshal& Manges LLP and Baker Botts LLP, where she counseled clients on matters of complex commercial litigation, risk management, and taxation. Ms.Brooks is a licensed Certified Public Accountant and holds a Juris Doctor from Duke University School of Law and Bachelor of Science and Master of Science in accounting from Oklahoma State University.
Officer Compensation
In connection with his appointment as Executive Vice President and Chief Operating Officer of the Company and the Manager, the Company Board and the Manager Board (as applicable) approved the following actions with respect to Mr.Lamb’s compensation, in each case, effective as of June21, 2018: (1)increasing his base salary from an annual rate of pay of $435,000 to $475,000; and (2)increasing his target percentage for the short-term incentive program (the “STI Program”) from 90% to 50%. A description of the STI Program is provided in each of the Partnership’s annual report on Form10-K (the “Partnership 2018 10-K”) and ENLC’s annual report on Form10-K (the “ENLC 2018 10-K”, and, together with the Partnership 2018 10-K, the “2018 10-Ks”), respectively, each filed with the Securities and Exchange Commission on February21, 2018. Each of the Compensation Committee of the Company Board and the Governance and Compensation Committee of the Manager Board recommended that the applicable Board approve the foregoing appointment and compensation changes.
In connection with her appointment as Executive Vice President, Chief Legal and Administrative Officer, and Secretary of the Company and the Manager, the Company Board and the Manager Board (as applicable) approved the following with respect to Ms.Brooks’ compensation, in each case, effective as of June21, 2018: (1)a base salary annual rate of pay of $425,000; and (2)a target percentage for the STI Program of 90%. A description of the STI Program is provided in each of the 2018 10-Ks. Each of the Compensation Committee of the Company Board and the Governance and Compensation Committee of the Manager Board recommended that the applicable Board approve the foregoing appointment and compensation changes. In addition, effective June21, 2018, Ms.Brooks and a subsidiary of the Partnership entered into (i)an agreement (the “Amended CIC Agreement”) that amends and restates Ms.Brooks’ prior change in control agreement, which is materially consistent with the form of change in control agreement described in the 2018 10-Ks that the Company Board previously approved and (ii)an agreement (the “Amended Severance Agreement”) that amends and restates
Ms. Brooks’ prior severance agreement, which is materially consistent with the form of severance agreement described in the 2018 10-Ks that the Company Board previously approved. The Amended CIC Agreement is materially consistent with Ms.Brooks’ prior change in control agreement except that the multiple used to determine the cash severance amount that would be payable to Ms.Brooks upon a qualifying termination during the period that begins 120 days prior to a change in control (as defined in the Amended CIC Agreement) and ends 24 months following a change in control was increased from 1x to 2x. The Amended Severance Agreement is materially consistent with Ms.Brooks’ prior severance agreement except that the multiple used to determine the cash severance amount that would be payable to Ms.Brooks upon a qualifying termination (as defined in the Amended Severance Agreement) was increased from 1x to 2x. The foregoing description of the Amended CIC Agreement does not purport to be complete and is qualified in its entirety by reference to the text of the Formof Amended and Restated Change in Control Agreement, which is filed as Exhibit10.10 to the Partnership 2018 10-K and incorporated herein by reference. The foregoing description of the Amended Severance Agreement does not purport to be complete and is qualified in its entirety by reference to the text of the Formof Amended and Restated Severance Agreement, which is filed as Exhibit10.9 to the Partnership 2018 10-K and incorporated herein by reference.
In addition, on June21, 2018, the Company Board and the Manager Board approved increasing Eric D. Batchelder’s base salary from an annual rate of pay of $380,000 to $435,000 in order to compensate Mr.Batchelder for adding corporate development responsibilities to his role as Executive Vice President and Chief Financial Officer. Each of the Compensation Committee of the Company Board and the Governance and Compensation Committee of the Manager Board recommended that the applicable Board approve the foregoing compensation changes.
Officer Departure
On June25, 2018, the Partnership announced that Mr.McMillan (“Mac”) Hummel, Executive Vice President/Business Unit President, will depart the Company and the Manager after an appropriate transition period.
Item 7.01.Regulation FD Disclosure.
On June25, 2018, the Partnership issued a press release announcing the appointments and departure described in Item 5.02 of this Current Report. A copy of the press release is furnished as Exhibit99.1 to this Current Report. In accordance with General Instruction B.2 of Form8-K, the information set forth in this Item 7.01 and in the attached exhibit shall be deemed to be furnished and shall not be deemed to be “filed” for purposes of Section18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
Item 9.01.Financial Statements and Exhibits.
(d) Exhibits.
In accordance with General Instruction B.2 of Form8-K, the information set forth in the attached Exhibit99.1 shall be deemed to be furnished and shall not be deemed to be “filed” for purposes of Section18 of the Exchange Act.
EnLink Midstream Partners, LP ExhibitEX-10.1 2 a18-15763_1ex10d1.htm EX-10.1 Exhibit 10.1 Execution Version SECOND AMENDMENT TO CREDIT AGREEMENT AND LIMITED CONSENT This SECOND AMENDMENT TO CREDIT AGREEMENT AND LIMITED CONSENT (this Amendment and Consent),…To view the full exhibit click here About ENLINK MIDSTREAM PARTNERS, LP (NYSE:ENLK) EnLink Midstream Partners, LP is a midstream energy services company. The Company operates in five segments: Texas, which includes its natural gas gathering, processing and transmission activities in north Texas and the Permian Basin in west Texas; Oklahoma, which includes its natural gas gathering, processing and transmission activities in Cana-Woodford and Arkoma-Woodford Shale areas; Louisiana, which includes its natural gas pipelines, natural gas processing plants and natural gas liquids (NGL) assets located in Louisiana; Crude and Condensate, which includes its Ohio River Valley (ORV) crude oil, condensate and brine disposal activities in the Utica and Marcellus Shales, its equity interests, crude oil operations in the Permian Basin and crude oil activities associated with the Victoria Express Pipeline, and related truck terminal and storage assets (VEX) located in the Eagle Ford Shale, and Corporate Segment.