Triangle Petroleum Corporation (NYSEMKT:TPLM): Agreement with FREIF


Dallas, Texas 10/08/2013 (Financialstrend) – Triangle Petroleum Corporation (NYSEMKT:TPLM) and First Reserve Energy Infrastructure Fund, L.P. have agreed to restate the terms of agreement which governs the joint venture between their fully owned subsidiaries Triangle Caliber Holdings, LLC and FREIF Caliber Holdings LLC (“FREIF”) respectively . The joint venture goes by the nomenclature of “Caliber Midstream Partners, L.P.”This was announced via a press note the company released on September 12.

As per the reworked terms of the agreement the joint venture partners have entered into a renewed “contribution agreement” dated October 1. The contribution agreement allows FREIF to pump in an additional $80.0 million to the joint venture entity Caliber. In lieu of this additional funding, FERIF will get ownership of an additional 8 million Class A Units. These new stock would have be issued on or before June 30, 2014 as per the agreement.

Additionally, Triangle Caliber Holdings current holdings of 4 million “Class A Trigger Units” will consequently get converted to 4 million Class A Units. The reallocation of this stock also has to be completed on or before June 30, 2014.

With the coming into effect of the reworked stock holding patterns, FREIF will be in control of 15 million Class A Units. This translates into a 68% share in the joint venture vehicle “Caliber” for FREIF. Post the reworked holding pattern, Triangle Caliber Holdings will be in control of 7 million Class A Units and will translated to a 32% interest in Caliber a increase of 2% from its previous holding.

Post the implementation of the contribution agreement, FREIF will assume the role of a controlling partner while Triangle Caliber Holdings will exercise its role as a participating partner in the joint venture.  The market cap of the parent Triangle Petroleum Corporation (AMEX: TPLM) is $598 million with total share outstanding of 56.45 million.