Genesis Energy, L.P. announced the closing of the sale of its soda ash manufacturing and related operations, known as the Alkali Business, to an indirect affiliate of WE Soda Ltd. The transaction was valued at an implied enterprise value of $1.425 billion.
Following the transaction, Genesis Energy received approximately $1.0 billion in cash, net of associated transaction costs and expenses. The purchaser assumed the ORRI bonds, which had approximately $413 million outstanding as of the transaction date.
The company plans to strategically deploy these net proceeds to pay down its senior secured revolving credit facility to zero, permanently retire unsecured debt, and repurchase corporate convertible preferred equity securities. This divestiture allows Genesis to refocus on its core midstream energy businesses and significantly simplify its capital structure.
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