A credit fund managed by Global Infrastructure Partners (GIP) has made its first investment with the provision of debt financing to help fund a US gas pipeline project.

GIP said the GIP Spectrum Fund and its co-investors have closed on the purchase of $325m (€290m) of an aggregate $400m senior secured bullet notes in Whistler Pipeline.

The amount raised, together with other loans and funds from Whistler Pipeline’s owners MPLX, WhiteWater Midstream and a joint venture between Stonepeak Infrastructure Partners and West Texas Gas, will fund construction of the project.

The Whistler Pipeline – expected to be in-service in the third quarter of 2021 – is a 500‐mile, natural gas pipeline that will connect the Permian Basin to the Agua Dulce hub near Corpus Christi, Texas.

Jennifer Powers, GIP Partner and chair of GIP Credit, said: “This investment exemplifies GIP Spectrum’s ability to provide unique credit solutions in size for high quality, essential infrastructure projects, and move quickly to efficiently conduct due diligence even during these unprecedented market conditions.”

Scott Simmons, senior VP and CFO of WhiteWater Midstream, said: “Closing the debt financing in the current market environment is a testament to the quality of the project and the efforts of all our partners.

“We are excited to be the first investment in the GIP Spectrum Fund and appreciate the creativity and support of the GIP Credit team to help make this financing a success.”

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