Client challenge
To plan and execute a Master Limited Partnership (MLP) and a major spin-off by:
- Evaluating the costs and challenges of various MLP and separation plans.
- Addressing the operations and transaction complexities, industry regulations and tax laws as well as NYSE and SEC requirements.
- Preparing for the possibility of business disruptions.
PwC's solution
Helping to design and implement an MLP formation and operations separation plan across all departments and workstreams by:
- Working with department heads on separation analysis and execution, financial modeling, and transaction planning.
- Using a minimal-risk “clone and go” approach to set up the new entities.
- Dealing with the tax modeling and public offering associated with creating an additional MLP.
Impact on client's business
- The MLP raised over $1 Billion.
- The billion-dollar spin-off occurred on time and was met enthusiastically by investors.
- There were no post-separation business disruptions.
- The new entities complied with all financial, tax and industry regulations.
