0001193125-19-231123.txt : 20190828 0001193125-19-231123.hdr.sgml : 20190828 20190827211136 ACCESSION NUMBER: 0001193125-19-231123 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20190828 DATE AS OF CHANGE: 20190827 GROUP MEMBERS: BIA GP L.L.C. GROUP MEMBERS: BIA GP L.P. GROUP MEMBERS: BIP HOLDINGS MANAGER L.L.C. GROUP MEMBERS: BLACKSTONE GROUP INC. GROUP MEMBERS: BLACKSTONE GROUP MANAGEMENT L.L.C. GROUP MEMBERS: BLACKSTONE HOLDINGS III GP L.P. GROUP MEMBERS: BLACKSTONE HOLDINGS III GP MANAGEMENT L.L.C. GROUP MEMBERS: BLACKSTONE INFRASTRUCTURE ASSOCIATES L.P. GROUP MEMBERS: PRAIRIE ECI ACQUIROR LP GROUP MEMBERS: PRAIRIE NON-ECI ACQUIROR LP GROUP MEMBERS: PRAIRIE SECONDARY ACQUIROR E LP GROUP MEMBERS: PRAIRIE SECONDARY ACQUIROR LP GROUP MEMBERS: PRAIRIE VCOC ACQUIROR LP GROUP MEMBERS: STEPHEN A. SCHWARZMAN SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: Tallgrass Energy, LP CENTRAL INDEX KEY: 0001633651 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION [4922] IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-88849 FILM NUMBER: 191058995 BUSINESS ADDRESS: STREET 1: 4200 W. 115TH STREET, SUITE 350 CITY: LEAWOOD STATE: KS ZIP: 66211 BUSINESS PHONE: 913-928-6060 MAIL ADDRESS: STREET 1: 4200 W. 115TH STREET, SUITE 350 CITY: LEAWOOD STATE: KS ZIP: 66211 FORMER COMPANY: FORMER CONFORMED NAME: Tallgrass Energy GP, LP DATE OF NAME CHANGE: 20150211 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Blackstone Holdings III L.P. CENTRAL INDEX KEY: 0001404073 IRS NUMBER: 260288853 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 345 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10154 BUSINESS PHONE: (212) 583-5000 MAIL ADDRESS: STREET 1: 345 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10154 SC 13D/A 1 d749208dsc13da.htm SC 13D/A SC 13D/A

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 4)*

 

 

Tallgrass Energy, LP

(Name of Issuer)

Class A Shares Representing Limited Partner Interests

(Title of Class of Securities)

874696107

(CUSIP Number)

John G. Finley

The Blackstone Group Inc.

345 Park Avenue

New York, NY 10154

Tel: (212) 583-5000

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

August 27, 2019

(Date of Event Which Requires Filing of this Statement)

 

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), Rule 13d-1(f) or Rule 13d-1(g), check the following box.  ☐

 

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7(b) for other parties to whom copies are to be sent.

 

 

 

*

The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

 


  1    

  Name of Reporting Person

 

  Prairie ECI Acquiror LP

  2    

  Check the Appropriate Box if a Member of a Group

  (A):  ☐        (B):  ☒

 

  3    

  SEC Use Only

 

  4    

  Source of Funds

 

  OO

  5    

  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(D) or 2(E)

 

  ☐

  6    

  Citizenship or Place of Organization

 

  Delaware

Number of

Shares

  Beneficially  

Owned by

Each

Reporting

Person

with

    7     

  Sole Voting Power

 

  0

  8     

  Shared Voting Power

 

  98,353,838

  9     

  Sole Dispositive Power

 

  0

  10     

  Shared Dispositive Power

 

  98,353,838

11    

  Aggregate Amount Beneficially Owned by Each Reporting Person

 

  98,353,838

12    

  Check if the Aggregate Amount in Row (11) Excludes Certain Shares

 

  ☐

13    

  Percent of Class Represented by Amount in Row (11)

 

  35.44%

14    

  Type of Reporting Person

 

  PN


  1    

  Name of Reporting Person

 

  Prairie Non-ECI Acquiror LP

  2    

  Check the Appropriate Box if a Member of a Group

  (A):  ☐        (B):  ☒

 

  3    

  SEC Use Only

 

  4    

  Source of Funds

 

  OO

  5    

  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(D) or 2(E)

 

  ☐

  6    

  Citizenship or Place of Organization

 

  Delaware

Number of

Shares

  Beneficially  

Owned by

Each

Reporting

Person

with

    7     

  Sole Voting Power

 

  0

  8     

  Shared Voting Power

 

  21,751,018

  9     

  Sole Dispositive Power

 

  0

  10     

  Shared Dispositive Power

 

  21,751,018

11    

  Aggregate Amount Beneficially Owned by Each Reporting Person

 

  21,751,018

12    

  Check if the Aggregate Amount in Row (11) Excludes Certain Shares

 

  ☐

13    

  Percent of Class Represented by Amount in Row (11)

 

  12.14%

14    

  Type of Reporting Person

 

  PN


  1    

  Name of Reporting Person

 

  Prairie VCOC Acquiror LP

  2    

  Check the Appropriate Box if a Member of a Group

  (A):  ☐        (B):  ☒

 

  3    

  SEC Use Only

 

  4    

  Source of Funds

 

  OO

  5    

  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(D) or 2(E)

 

  ☐

  6    

  Citizenship or Place of Organization

 

  Delaware

Number of

Shares

  Beneficially  

Owned by

Each

Reporting

Person

with

    7     

  Sole Voting Power

 

  0

  8     

  Shared Voting Power

 

  2,301,283

  9     

  Sole Dispositive Power

 

  0

  10     

  Shared Dispositive Power

 

  2,301,283

11    

  Aggregate Amount Beneficially Owned by Each Reporting Person

 

  2,301,283

12    

  Check if the Aggregate Amount in Row (11) Excludes Certain Shares

 

  ☐

13    

  Percent of Class Represented by Amount in Row (11)

 

  1.27%

14    

  Type of Reporting Person

 

  PN


  1    

  Name of Reporting Person

 

  Prairie Secondary Acquiror LP

  2    

  Check the Appropriate Box if a Member of a Group

  (A):  ☐        (B):  ☒

 

  3    

  SEC Use Only

 

  4    

  Source of Funds

 

  OO

  5    

  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(D) or 2(E)

 

  ☐

  6    

  Citizenship or Place of Organization

 

  Delaware

Number of

Shares

  Beneficially  

Owned by

Each

Reporting

Person

with

    7     

  Sole Voting Power

 

  0

  8     

  Shared Voting Power

 

  773,510

  9     

  Sole Dispositive Power

 

  0

  10     

  Shared Dispositive Power

 

  773,510

11    

  Aggregate Amount Beneficially Owned by Each Reporting Person

 

  773,510

12    

  Check if the Aggregate Amount in Row (11) Excludes Certain Shares

 

  ☐

13    

  Percent of Class Represented by Amount in Row (11)

 

  0.43%

14    

  Type of Reporting Person

 

  PN


  1    

  Name of Reporting Person

 

  Prairie Secondary Acquiror E LP

  2    

  Check the Appropriate Box if a Member of a Group

  (A):  ☐        (B):  ☒

 

  3    

  SEC Use Only

 

  4    

  Source of Funds

 

  OO

  5    

  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(D) or 2(E)

 

  ☐

  6    

  Citizenship or Place of Organization

 

  Delaware

Number of

Shares

  Beneficially  

Owned by

Each

Reporting

Person

with

    7     

  Sole Voting Power

 

  0

  8     

  Shared Voting Power

 

  1,127,935

  9     

  Sole Dispositive Power

 

  0

  10     

  Shared Dispositive Power

 

  1,127,935

11    

  Aggregate Amount Beneficially Owned by Each Reporting Person

 

  1,127,935

12    

  Check if the Aggregate Amount in Row (11) Excludes Certain Shares

 

  ☐

13    

  Percent of Class Represented by Amount in Row (11)

 

  0.63%

14    

  Type of Reporting Person

 

  PN


  1    

  Name of Reporting Person

 

  BIP Holdings Manager L.L.C.

  2    

  Check the Appropriate Box if a Member of a Group

  (A):  ☐        (B):  ☒

 

  3    

  SEC Use Only

 

  4    

  Source of Funds

 

  OO

  5    

  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(D) or 2(E)

 

  ☐

  6    

  Citizenship or Place of Organization

 

  Delaware

Number of

Shares

  Beneficially  

Owned by

Each

Reporting

Person

with

    7     

  Sole Voting Power

 

  0

  8     

  Shared Voting Power

 

  124,307,584

  9     

  Sole Dispositive Power

 

  0

  10     

  Shared Dispositive Power

 

  124,307,584

11    

  Aggregate Amount Beneficially Owned by Each Reporting Person

 

  124,307,584

12    

  Check if the Aggregate Amount in Row (11) Excludes Certain Shares

 

  ☐

13    

  Percent of Class Represented by Amount in Row (11)

 

  44.42%

14    

  Type of Reporting Person

 

  OO


  1    

  Name of Reporting Person

 

  Blackstone Infrastructure Associates L.P.

  2    

  Check the Appropriate Box if a Member of a Group

  (A):  ☐        (B):  ☒

 

  3    

  SEC Use Only

 

  4    

  Source of Funds

 

  OO

  5    

  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(D) or 2(E)

 

  ☐

  6    

  Citizenship or Place of Organization

 

  Delaware

Number of

Shares

  Beneficially  

Owned by

Each

Reporting

Person

with

    7     

  Sole Voting Power

 

  0

  8     

  Shared Voting Power

 

  124,307,584

  9     

  Sole Dispositive Power

 

  0

  10     

  Shared Dispositive Power

 

  124,307,584

11    

  Aggregate Amount Beneficially Owned by Each Reporting Person

 

  124,307,584

12    

  Check if the Aggregate Amount in Row (11) Excludes Certain Shares

 

  ☐

13    

  Percent of Class Represented by Amount in Row (11)

 

  44.42%

14    

  Type of Reporting Person

 

  PN


  1    

  Name of Reporting Person

 

  BIA GP L.P.

  2    

  Check the Appropriate Box if a Member of a Group

  (A):  ☐        (B):  ☒

 

  3    

  SEC Use Only

 

  4    

  Source of Funds

 

  OO

  5    

  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(D) or 2(E)

 

  ☐

  6    

  Citizenship or Place of Organization

 

  Delaware

Number of

Shares

  Beneficially  

Owned by

Each

Reporting

Person

with

    7     

  Sole Voting Power

 

  0

  8     

  Shared Voting Power

 

  124,307,584

  9     

  Sole Dispositive Power

 

  0

  10     

  Shared Dispositive Power

 

  124,307,584

11    

  Aggregate Amount Beneficially Owned by Each Reporting Person

 

  124,307,584

12    

  Check if the Aggregate Amount in Row (11) Excludes Certain Shares

 

  ☐

13    

  Percent of Class Represented by Amount in Row (11)

 

  44.42%

14    

  Type of Reporting Person

 

  PN


  1    

  Name of Reporting Person

 

  BIA GP L.L.C.

  2    

  Check the Appropriate Box if a Member of a Group

  (A):  ☐        (B):  ☒

 

  3    

  SEC Use Only

 

  4    

  Source of Funds

 

  OO

  5    

  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(D) or 2(E)

 

  ☐

  6    

  Citizenship or Place of Organization

 

  Delaware

Number of

Shares

  Beneficially  

Owned by

Each

Reporting

Person

with

    7     

  Sole Voting Power

 

  0

  8     

  Shared Voting Power

 

  124,307,584

  9     

  Sole Dispositive Power

 

  0

  10     

  Shared Dispositive Power

 

  124,307,584

11    

  Aggregate Amount Beneficially Owned by Each Reporting Person

 

  124,307,584

12    

  Check if the Aggregate Amount in Row (11) Excludes Certain Shares

 

  ☐

13    

  Percent of Class Represented by Amount in Row (11)

 

  44.42%

14    

  Type of Reporting Person

 

  OO


  1    

  Name of Reporting Person

 

   Blackstone Holdings III L.P.

  2    

  Check the Appropriate Box if a Member of a Group

  (A):  ☐        (B):  ☒

 

  3    

  SEC Use Only

 

  4    

  Source of Funds

 

  OO

  5    

  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(D) or 2(E)

 

  ☐

  6    

  Citizenship or Place of Organization

 

  Quebec, Canada

Number of

Shares

  Beneficially  

Owned by

Each

Reporting

Person

with

    7     

  Sole Voting Power

 

  0

  8     

  Shared Voting Power

 

  124,307,584

  9     

  Sole Dispositive Power

 

  0

  10     

  Shared Dispositive Power

 

  124,307,584

11    

  Aggregate Amount Beneficially Owned by Each Reporting Person

 

  124,307,584

12    

  Check if the Aggregate Amount in Row (11) Excludes Certain Shares

 

  ☐

13    

  Percent of Class Represented by Amount in Row (11)

 

  44.42%

14    

  Type of Reporting Person

 

  PN


  1    

  Name of Reporting Person

 

  Blackstone Holdings III GP L.P.

  2    

  Check the Appropriate Box if a Member of a Group

  (A):  ☐        (B):  ☒

 

  3    

  SEC Use Only

 

  4    

  Source of Funds

 

  OO

  5    

  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(D) or 2(E)

 

  ☐

  6    

  Citizenship or Place of Organization

 

  Delaware

Number of

Shares

  Beneficially  

Owned by

Each

Reporting

Person

with

    7     

  Sole Voting Power

 

  0

  8     

  Shared Voting Power

 

  124,307,584

  9     

  Sole Dispositive Power

 

  0

  10     

  Shared Dispositive Power

 

  124,307,584

11    

  Aggregate Amount Beneficially Owned by Each Reporting Person

 

  124,307,584

12    

  Check if the Aggregate Amount in Row (11) Excludes Certain Shares

 

  ☐

13    

  Percent of Class Represented by Amount in Row (11)

 

  44.42%

14    

  Type of Reporting Person

 

  PN


  1    

  Name of Reporting Person

 

  Blackstone Holdings III GP Management L.L.C.

  2    

  Check the Appropriate Box if a Member of a Group

  (A):  ☐        (B):  ☒

 

  3    

  SEC Use Only

 

  4    

  Source of Funds

 

  OO

  5    

  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(D) or 2(E)

 

  ☐

  6    

  Citizenship or Place of Organization

 

  Delaware

Number of

Shares

  Beneficially  

Owned by

Each

Reporting

Person

with

    7     

  Sole Voting Power

 

  0

  8     

  Shared Voting Power

 

  124,307,584

  9     

  Sole Dispositive Power

 

  0

  10     

  Shared Dispositive Power

 

  124,307,584

11    

  Aggregate Amount Beneficially Owned by Each Reporting Person

 

  124,307,584

12    

  Check if the Aggregate Amount in Row (11) Excludes Certain Shares

 

  ☐

13    

  Percent of Class Represented by Amount in Row (11)

 

  44.42%

14    

  Type of Reporting Person

 

  OO


  1    

  Name of Reporting Person

 

  The Blackstone Group Inc.

  2    

  Check the Appropriate Box if a Member of a Group

  (A):  ☐        (B):  ☒

 

  3    

  SEC Use Only

 

  4    

  Source of Funds

 

  OO

  5    

  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(D) or 2(E)

 

  ☐

  6    

  Citizenship or Place of Organization

 

  Delaware

Number of

Shares

  Beneficially  

Owned by

Each

Reporting

Person

with

    7     

  Sole Voting Power

 

  0

  8     

  Shared Voting Power

 

  124,307,584

  9     

  Sole Dispositive Power

 

  0

  10     

  Shared Dispositive Power

 

  124,307,584

11    

  Aggregate Amount Beneficially Owned by Each Reporting Person

 

  124,307,584

12    

  Check if the Aggregate Amount in Row (11) Excludes Certain Shares

 

  ☐

13    

  Percent of Class Represented by Amount in Row (11)

 

  44.42%

14    

  Type of Reporting Person

 

  CO


  1    

  Name of Reporting Person

 

  Blackstone Group Management L.L.C.

  2    

  Check the Appropriate Box if a Member of a Group

  (A):  ☐        (B):  ☒

 

  3    

  SEC Use Only

 

  4    

  Source of Funds

 

  OO

  5    

  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(D) or 2(E)

 

  ☐

  6    

  Citizenship or Place of Organization

 

  Delaware

Number of

Shares

  Beneficially  

Owned by

Each

Reporting

Person

with

    7     

  Sole Voting Power

 

  0

  8     

  Shared Voting Power

 

  124,307,584

  9     

  Sole Dispositive Power

 

  0

  10     

  Shared Dispositive Power

 

  124,307,584

11    

  Aggregate Amount Beneficially Owned by Each Reporting Person

 

  124,307,584

12    

  Check if the Aggregate Amount in Row (11) Excludes Certain Shares

 

  ☐

13    

  Percent of Class Represented by Amount in Row (11)

 

  44.42%

14    

  Type of Reporting Person

 

  OO


  1    

  Name of Reporting Person

 

  Stephen A. Schwarzman

  2    

  Check the Appropriate Box if a Member of a Group

  (A):  ☐        (B):  ☒

 

  3    

  SEC Use Only

 

  4    

  Source of Funds

 

  OO

  5    

  Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(D) or 2(E)

 

  ☐

  6    

  Citizenship or Place of Organization

 

  United States of America

Number of

Shares

  Beneficially  

Owned by

Each

Reporting

Person

with

    7     

  Sole Voting Power

 

  0

  8     

  Shared Voting Power

 

  124,307,584

  9     

  Sole Dispositive Power

 

  0

  10     

  Shared Dispositive Power

 

  124,307,584

11    

  Aggregate Amount Beneficially Owned by Each Reporting Person

 

  124,307,584

12    

  Check if the Aggregate Amount in Row (11) Excludes Certain Shares

 

  ☐

13    

  Percent of Class Represented by Amount in Row (11)

 

  44.42%

14    

  Type of Reporting Person

 

  IN


This Amendment No. 4 to Schedule 13D (this “Amendment No. 4”) relates to the Class A Shares Representing Limited Partner Interests (the “Class A Shares”) of Tallgrass Energy, LP, a Delaware limited partnership (the “Issuer”), and amends and supplements the initial statement on Schedule 13D filed by the Reporting Persons with the Securities and Exchange Commission (the “SEC”) on March 11, 2019, as amended by Amendment No. 1 to Schedule 13D filed by the Reporting Persons with the SEC on March 25, 2019, Amendment No. 2 to Schedule 13D filed by the Reporting Persons with the SEC on May 9, 2019 and Amendment No. 3 to Schedule 13D filed by the Reporting Persons with the SEC on August 1, 2019 (collectively, the “Schedule 13D”). Capitalized terms used but not defined in this Amendment No. 4 shall have the same meanings ascribed to them in the Schedule 13D. Except as specifically provided herein, this Amendment No. 4 does not modify any of the information previously reported in the Schedule 13D.

 

Item 3.

Source and Amount of Funds or Other Consideration.

Item 3 of the Schedule 13D is hereby amended by inserting the following information at the end of Item 3:

In connection with the transaction proposed by the Proposal described in Item 4 of this Amendment No. 4, the Reporting Persons anticipate that the funding for such transactions will be obtained through a combination of capital contributions from the partners and members of newly formed acquisition vehicles managed by the Reporting Persons or their affiliates, which members and partners may include funds managed by the Reporting Persons as well as affiliates of the members and partners of entities managed by Holdings Manager, and through debt financing on terms to be determined.

 

Item 4.

Purpose of Transaction.

Item 4 of the Schedule 13D is hereby amended by inserting the following information at the end of Item 4:

On August 27, 2019, Blackstone Infrastructure Advisors L.L.C., an affiliate of the Reporting Persons, on behalf of Blackstone Infrastructure Partners, its partners and respective affiliates (collectively, the “Sponsors”), submitted a proposal (the “Proposal”) to the conflicts committee of the Board of Directors of TGE GP (the “Conflicts Committee”), the general partner of the Issuer, to acquire all of the Issuer’s outstanding Class A Shares not already owned by the Sponsors in exchange for $19.50 in cash per Class A Share. The transaction would be structured as a merger between the Issuer and a newly formed acquisition vehicle controlled by the Sponsors. The Proposal is subject to the negotiation of definitive financing commitments on acceptable terms, the satisfactory negotiation and execution of definitive agreements and the approval of such agreements and the transactions contemplated thereunder by the Sponsors’ respective investment committees or board of directors, TGE GP’s Board of Directors, the Conflicts Committee and the shareholders of the Issuer. If the transaction is consummated, the Issuer’s Class A Shares would become delisted from the New York Stock Exchange.

The foregoing description of the Proposal does not purport to be complete and is qualified in its entirety by the full text of such proposal, which is attached as an exhibit to this Schedule 13D and is incorporated herein by reference.

While the Proposal remains under consideration and subject to negotiation, the Reporting Persons and their representatives may respond to inquiries from the Issuer and the Conflicts Committee or their representatives and engage in discussions and negotiations. The Reporting Persons also expect to engage in discussions and negotiations with potential equity and debt financing sources.

No assurances can be given that the transaction contemplated by the Sponsors or any other potential transaction involving the Sponsors and the Issuer will be consummated, or if a transaction is undertaken, as to its terms or timing. The Sponsors reserve the right to modify or withdraw the Proposal at any time. The Reporting Persons reserve the right to formulate other plans or make other proposals which could result in one or more of the transactions, events or actions specified in clauses (a) through (j) of Item 4 of Schedule 13D, and to modify or withdraw any such plan or proposal at any time.

 

Item 7.

Material to Be Filed as Exhibits.

Item 7 is hereby amended by adding the following:


Exhibit   

Description

13    Proposal Letter, dated August 27, 2019.


SIGNATURES

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Date: August 28, 2019

 

PRAIRIE ECI ACQUIROR LP
By: BIP Holdings Manager L.L.C., its general partner
By:  

/s/ Sean Klimczak

Name: Sean Klimczak
Title: Senior Managing Director
PRAIRIE NON-ECI ACQUIROR LP
By: BIP Holdings Manager L.L.C., its general partner
By:  

/s/ Sean Klimczak

Name: Sean Klimczak
Title: Senior Managing Director
PRAIRIE VCOC ACQUIROR LP
By: BIP Holdings Manager L.L.C., its general partner
By:  

/s/ Sean Klimczak

Name: Sean Klimczak
Title: Senior Managing Director
PRAIRIE SECONDARY ACQUIROR LP
By: BIP Holdings Manager L.L.C., its general partner
By:  

/s/ Sean Klimczak

Name: Sean Klimczak
Title: Senior Managing Director
PRAIRIE SECONDARY ACQUIROR E LP
By: BIP Holdings Manager L.L.C., its general partner
By:  

/s/ Sean Klimczak

Name: Sean Klimczak
Title: Senior Managing Director

 

[Tallgrass Energy, LP – Schedule 13D/A]


BIP HOLDINGS MANAGER L.L.C.
By:  

/s/ Sean Klimczak

Name: Sean Klimczak
Title: Senior Managing Director
BLACKSTONE INFRASTRUCTURE ASSOCIATES L.P.
By: BIA GP L.P., its general partner
By: BIA GP L.L.C., its general partner
By:  

/s/ Sean Klimczak

Name: Sean Klimczak
Title: Senior Managing Director
BIA GP L.P.
By: BIA GP L.L.C., its general partner
By:  

/s/ Sean Klimczak

Name: Sean Klimczak
Title: Senior Managing Director
BIA GP L.L.C.
By:  

/s/ Sean Klimczak

Name: Sean Klimczak
Title: Senior Managing Director
BLACKSTONE HOLDINGS III L.P.
By: Blackstone Holdings III GP L.P., its general partner
By: Blackstone Holdings III GP Management L.L.C., its general partner
By:  

/s/ John G. Finley

Name: John G. Finley
Title: Chief Legal Officer

 

[Tallgrass Energy, LP – Schedule 13D/A]


BLACKSTONE HOLDINGS III GP L.P.
By: Blackstone Holdings III GP Management L.L.C., its general partner
By:  

/s/ John G. Finley

Name: John G. Finley
Title: Chief Legal Officer
BLACKSTONE HOLDINGS III GP MANAGEMENT L.L.C.
By:  

/s/ John G. Finley

Name: John G. Finley
Title: Chief Legal Officer
THE BLACKSTONE GROUP INC.
By:  

/s/ John G. Finley

Name: John G. Finley
Title: Chief Legal Officer
BLACKSTONE GROUP MANAGEMENT L.L.C.
By:  

/s/ John G. Finley

Name: John G. Finley
Title: Chief Legal Officer
STEPHEN A. SCHWARZMAN
By:  

/s/ Stephen A. Schwarzman

By: Stephen A. Schwarzman

 

[Tallgrass Energy, LP – Schedule 13D/A]

EX-99.13 2 d749208dex9913.htm EXHIBIT 13 Exhibit 13

Exhibit 13

 

LOGO

August 27, 2019

Board of Directors

Tallgrass Energy GP LLC

4200 W. 115th Street, Suite 350

Leawood, KS 66211-2609

Re:     Proposal to Acquire All Outstanding Publicly-Available Class A Shares of Tallgrass Energy

Gentlemen:

On behalf of Blackstone Infrastructure Partners, its partners and respective affiliates (collectively, the “Sponsors”), I am pleased to submit to you this proposal (the “Proposal”) pursuant to which certain affiliates of the Sponsors would acquire for cash all of the outstanding Class A Shares (“Class A Shares”) of Tallgrass Energy, LP (“Tallgrass”) not already owned by Sponsors (the “Transaction”), at a price of $19.50 per Class A Share, subject to the negotiation of satisfactory definitive agreements and the other matters described below.

As you are aware, the Sponsors own, in the aggregate, 23,652,463 Class A Shares and 100,655,121 Class B Shares of Tallgrass (“Class B Shares”), representing 44.2% of the total outstanding equity interests in Tallgrass as of July 31, 2019 (as reported by Tallgrass in its Quarterly Report on Form 10-Q filed with the SEC on July 31, 2019) and 100,655,121 units in Tallgrass Equity, LLC. In addition, the Sponsors own 100% of the non-economic general partner interests in Tallgrass through their wholly-owned subsidiary, Tallgrass Energy GP, the general partner of Tallgrass (“Tallgrass GP”).

Proposal

Our Proposal delivers certain and significant value and liquidity to Tallgrass’s shareholders. Specifically, the proposed consideration represents:

 

   

A 35.9% premium to the closing price of the Class A Shares on August 27, 2019; and

 

   

A 12.0% premium to the volume-weighted average price of the Class A Shares over the last 30 calendar days through August 27, 2019.

Structure and Closing Conditions

We expect that the Transaction would be structured as a merger, through which a Sponsors-controlled acquisition vehicle would merge into Tallgrass, with Tallgrass surviving the merger.

We expect the Transaction’s definitive agreements would contain terms customary for a transaction of this type, including a customary condition to closing related to obtaining the approval of holders of a majority of the Class A Shares and Class B Shares, voting together as a single class. We do not expect that the Transaction’s definitive agreements would contain a condition that the Sponsors obtain financing, and, instead, the Sponsors would deliver customary equity and debt commitment letters at signing in amounts sufficient to fund the aggregate cash consideration to consummate a Transaction.


Process

We anticipate that the Board of Directors of Tallgrass GP will form a Conflicts Committee comprised entirely of directors satisfying the independence requirements of Tallgrass’s partnership agreement, and delegate to the Conflicts Committee the authority to evaluate and negotiate the Proposal, including, for the avoidance of doubt, the authority to reject the Proposal. We also anticipate that the Conflicts Committee will engage independent legal and financial advisors selected by the Conflicts Committee to advise it in connection with evaluating this Proposal.

In anticipation of such a delegation, we want to advise you that we are interested only in acquiring Class A Shares of Tallgrass and are not interested in selling any of our equity interests in Tallgrass or pursuing other strategic alternatives involving Tallgrass.

We would welcome the opportunity to present the Proposal in more detail to the Conflicts Committee and its advisors as soon as possible.

Advisors

We have engaged Citi as our financial advisor and Vinson & Elkins as our legal advisor, and we are prepared to dedicate such resources as may be necessary to complete negotiations, execute definitive agreements and close the Transaction as promptly as practicable.

Internal Approvals

This Proposal has been approved by Blackstone’s Investment Committee. Notwithstanding this approval, the entry into any definitive agreement is conditioned upon the negotiation of definitive financing commitments on acceptable terms, the satisfactory negotiation of definitive agreements and the approval of those agreements by the Sponsors’ respective investment committees or board of directors as well as by the Board of Directors of Tallgrass GP.

Disclosures

We expect to make appropriate amendments to the Sponsors’ Schedule 13D, as required under applicable securities laws, disclosing this Proposal promptly upon delivery.

Legal Effect

The Proposal is non-binding, and no agreement, arrangement or understanding between the parties with respect to the Proposal or any other transaction (including any agreement to commence or continue negotiations) shall be created until such time as mutually satisfactory definitive agreements have been executed and delivered.

The Sponsors are well positioned to negotiate and complete the Transaction, including obtaining any required financing, in an expeditious manner. If this Proposal is acceptable to the Conflicts Committee, the Sponsors are prepared to immediately negotiate definitive agreements in respect of the Transaction.

We look forward to receiving the Conflicts Committee’s response to this Proposal and working with you to complete a transaction that we believe is attractive to Tallgrass’s public shareholders.


Sincerely,
/s/ Wallace C. Henderson
Wallace C. Henderson
Senior Managing Director
Blackstone Infrastructure Advisors L.L.C.
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