Nut Tree Capital Management and Caspian Capital Oppose Martin Midstream Partners L.P. Sale to Martin Resource Management Corporation
Nut Tree Capital Management and Caspian Capital Oppose Martin Midstream Partners L.P. Sale to Martin Resource Management Corporation
Nut Tree and Caspian Believe Proposed Sale Significantly Undervalues MMLP
and its Future Prospects
Nut Tree和C裏帕恪信認爲擬議的出售明顯低估了MMLP
以及其未來前景
Nut Tree and Caspian Intend to File a Proxy Statement and Solicit Proxies
to Vote "AGAINST" the Proposed Sale
Nut Tree和C裏帕打算提交代理聲明並徵求代理投票
以投票"AGAINST"擬議的出售
Nut Tree and Caspian Launch
Nut Tree和C裏帕啓動
NEW YORK, Oct. 22, 2024 /PRNewswire/ -- Nut Tree Capital Management L.P. ("Nut Tree") and Caspian Capital L.P. ("Caspian"), today announced that they intend to oppose the proposed sale of Martin Midstream Partners L.P. ("MMLP" or the "Company") (Nasdaq: MMLP) to Martin Resource Management Corporation ("MRMC"), an affiliate of the Company's General Partner, for $4.02 per MMLP common unit not already owned by MRMC. Nut Tree and Caspian have combined economic exposure in the Company of approximately 13.2% of the outstanding common units through certain cash-settled derivative agreements and are aligned with MMLP unitholders who are unaffiliated with MRMC in seeking to protect the long-term value of the Company.
紐約,2024年10月22日 / PRNewswire/ --Nut Tree Capital Management L.P.("Nut Tree")和C裏帕資本L.P.("C裏帕")今天宣佈,他們打算反對將Martin Midstream Partners L.P.("MMLP"或"公司")(納斯達克:MMLP)出售給Martin Resource Management Corporation("MRMC"),該公司的普通合作伙伴,每個未由MRMC已擁有的MMLP普通單位售價爲4.02美元。Nut Tree和C裏帕通過某些以現金結算的衍生協議在公司中擁有約13.2%的已發行普通單位的經濟敞口,並與MRMC無關的MMLP受益人一致,共同尋求保護公司的長期價值。
Nut Tree and Caspian believe that the proposed sale price significantly undervalues the Company and its prospects, and that if the merger is completed on its current terms, MRMC will receive significant upside for itself that rightfully belongs to all MMLP unitholders. Nut Tree and Caspian intend to file a proxy statement with the Securities and Exchange Commission and solicit votes "AGAINST" the proposed transaction at the Company's upcoming special meeting to be held to approve the related merger agreement.
Nut Tree和Caspian相信,擬議中的銷售價格明顯低估了公司及其前景,如果合併按照目前條款完成,MRMC將會爲自己獲得相當大的好處,這實際上應當歸屬於所有MMLP份額持有人。 Nut Tree和Caspian打算向證券交易委員會提交代理聲明,並在公司即將舉行的特別會議上徵求"反對"擬議交易的投票。
Additional information can be found at .
可以在此處找到更多信息。
Nut Tree and Caspian's serious concerns with the undervalued and grossly conflicted sale of MMLP to MRMC are based on the following beliefs:
Nut Tree和Caspian對MMLP以低估價值和存在重大利益衝突的被MRMC收購的嚴重擔憂,是基於以下信念:
-
MRMC's latest acquisition proposal significantly undervalues MMLP and its future prospects. Comparable master limited partnerships, as described in MMLP's own publicly available investor presentation from May 2024, traded at approximately 8.5x expected 2024 EBITDA, whereas MRMC's offer represents an Enterprise Value of only 5.1x management's expected 2024 EBITDA. Furthermore, when referencing the same peers and the most recent equity research, that multiple has improved to 9.9x. At a 9.9x multiple, MMLP's common units would be valued 450% of what MRMC has offered.1 Additionally, based on MMLP's own public disclosures, we believe a number of positive developments are likely to come to fruition in the near and medium term, which will not only result in distributable cash flow above $1.00/common unit annually, but also likely result in significant actual cash distributions to common unitholders—potentially as early as 2025. Nut Tree and Caspian's views on MMLP's valuation were detailed in a July 29, 2024 letter to the Conflicts Committee and issued publicly via a press release the same day.2
-
The Conflicts Committee of the Board of Directors (the "Conflicts Committee") of Martin Midstream GP LLC (the "General Partner") ran a sham process that did not fully explore potentially superior alternatives to the sale to MRMC. The Conflicts Committee, which was formed to address conflicts of interest among MRMC and MMLP, failed to genuinely engage with us following our fully financed offer to acquire MMLP for $4.50 per common unit in cash, which represented a 48% premium over the $3.05 per common unit offer made by MRMC on May 24, 2024, nor did it respond to any of our diligence-related questions regarding the value of MMLP. By failing to explore the potential value flowing to MMLP unitholders under our proposal, or even to seek our views on valuation, the Conflicts Committee has brought into question its willingness to act in the best interests of MMLP common unitholders.
- The Conflicts Committee is grossly conflicted. The General Partner is wholly owned and controlled by MRMC and its subsidiaries, and Ruben Martin, III serves as Chairman of the Board of Directors of the General Partner and the President, Chief Executive Officer, and Chairman of the Board of Directors of MRMC. The Conflicts Committee is comprised of Byron Kelley (Chairman), James M. Collingsworth and C. Scott Massey, who have served with Mr. Martin on the General Partner's Board of Directors for approximately 12 years, 10 years and 22 years, respectively. The actions of the Conflicts Committee indicate to us that its members are too closely tied to Mr. Martin to protect the interests of MMLP's common unitholders.
- MRMC的最新收購提案明顯低估了MMLP及其未來前景。根據MMLP 2024年5月的公開投資者展示中介紹的可比制約性有限合夥企業,這些合作企業的2024年預期EBITDA約爲8.5倍,而MRMC的報價僅代表5.1倍管理層預期的2024年EBITDA的企業價值。此外,參考同行及最新的股權研究,該倍數已提升至9.9倍。以9.9倍倍數計算,MMLP的普通單元的價值將是MRMC提供價值的450%。此外,根據MMLP自己的公開披露,我們相信許多積極發展很可能在短期和中期實現,這不僅會導致每年可分配現金流超過1.00美元/普通單元,還可能導致普通單元持有人獲得顯着的實際現金分配—可能在2025年儘早。Nut Tree和Caspian對MMLP估值的看法已在2024年7月29日致衝突委員會的信函和同日通過新聞發佈公開表述。
- Martin Midstream GP LLC(普通合夥人)董事會衝突委員會是虛假程序,未充分探索優於向MRMC出售的可能替代方案。衝突委員會旨在解決MRMC和MMLP之間的利益衝突,未真正與我們進行接觸,也未就我們全資融資的以每普通單元4.50美元現金收購MMLP的要約做出回應,該要約較MRMC於2024年5月24日提出的每普通單元3.05美元的要約高出48%,也未對有關MMLP價值的盡職調查問題做出任何回應。由於未探索我們提議下可能流向MMLP份額持有人的潛在價值,甚至沒有徵求我們關於估值的看法,衝突委員會動機是否符合最佳利益對MMLP普通單元持有人提出了質疑。
- 衝突委員會存在嚴重利益衝突。總合夥人完全歸MRMC及其子公司所有和控制,Ruben Martin III擔任總合夥人董事會主席、MRMC總裁兼首席執行官、董事會主席。衝突委員會由Byron Kelley(主席)、James M. Collingsworth和C. Scott Massey組成,他們分別在總合夥人董事會上與Martin先生一起工作了大約12年、10年和22年。衝突委員會的行動表明,委員會成員與Martin先生聯繫過於緊密,無法保護MMLP的普通受益人利益。
Advisors
Olshan Frome Wolosky LLP and Latham & Watkins LLP are serving as legal counsel to Nut Tree and Caspian.
顧問
Olshan Frome Wolosky LLP和Latham & Watkins LLP正在擔任Nut Tree和Caspian的法律顧問。
About Caspian Capital LP
Caspian Capital LP's absolute return strategy was founded in 1997 and is focused on performing, stressed, distressed corporate credit, and value equities. Caspian currently oversees $4.6 billion in assets under management.
關於Caspian Capital LP
Caspian Capital LP的絕對回報策略成立於1997年,主要專注於表現、壓力測試、困境企業信用和價值股票。Caspian目前管理資產46億美元。
About Nut Tree Capital Management LP
Nut Tree Capital, founded in 2015, implements a fundamentals-based strategy focused on distressed credit, stressed/event-driven credit and value equities. Nut Tree currently oversees $4 billion in assets.
關於Nut Tree Capital Management LP
Nut Tree Capital成立於2015年,實施基於基本面的策略,重點關注困境信用、壓力/事件驅動信用和價值股票。Nut Tree目前管理資產40億美元。
Contacts:
For Investors:
John Ferguson/Joe Mills
Saratoga Proxy Consulting LLC
(212) 257-1311
[email protected]
聯繫人:
對於投資者:
約翰·弗格森/喬·米爾斯
Saratoga Proxy Consulting LLC
(212) 257-1311
[email protected]
For Media: Jonathan Gasthalter/Nathaniel Garnick
Gasthalter & Co.
(212) 257-4170
媒體聯繫人:喬納森·加斯塔爾特/納撒尼爾·加尼克
Gasthalter & Co。
(212) 257-4170
CERTAIN INFORMATION CONCERNING THE PARTICIPANTS
有關參與者的某些信息
Nut Tree Capital Management L.P., a Delaware limited partnership ("Nut Tree"), and Caspian Capital L.P., a Delaware limited partnership ("Caspian"), together with the other participants named herein, intend to file a preliminary proxy statement and accompanying proxy card with the Securities and Exchange Commission ("SEC") to be used to solicit votes in connection with their opposition to proposals to be presented at a special meeting of common unitholders of Martin Midstream Partners L.P., a Delaware limited partnership (the "Company"), in connection with the Company's agreement and plan of merger with Martin Resource Management Corporation and certain of its affiliates.
Nut Tree Capital Management L.P.,一個特拉華有限合夥制(「Nut Tree」)和Caspian Capital L.P.,一個特拉華有限合夥制(「Caspian」),連同此處命名的其他參與者,打算向證券交易委員會(「SEC」)提交初步代理聲明和隨附的代理卡,用於就他們反對提出的議案進行投票應用於馬丁中游合夥合夥人L.P.的普通權益人特別會議,一個特拉華有限合夥制 (「公司」),與馬丁資源管理公司及其某些關聯公司的併購協議和計劃相關。
NUT TREE AND CASPIAN STRONGLY ADVISE ALL COMMON UNITHOLDERS OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEB SITE AT HTTP://WWW.SEC.GOV. IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE, WHEN AVAILABLE, UPON REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO THE PARTICIPANTS' PROXY SOLICITOR.
Nut Tree和Caspian強烈建議公司的所有普通權益人閱讀代理聲明和其他代理材料,因爲它們將包含重要信息。此類代理材料將於HTTP://WWW.SEC.GOV的SEC網站免費提供。此外,此代理徵集的參與者將在請求時無償提供代理聲明的副本。請求副本應直接向參與者的代理律師提出。
The participants in the proxy solicitation are anticipated to be Nut Tree, Nut Tree Capital Management GP, LLC, a Delaware limited liability company ("Nut Tree GP"), Jared R. Nussbaum, Caspian, Caspian Capital GP LLC, a Delaware limited liability company ("Caspian GP"), Adam Cohen and David Corleto (collectively, the "Participants").
預計代理徵募的參與者將是Nut Tree,Nut Tree Capital Management GP,LLC,一個特拉華有限責任公司(「Nut Tree GP」),Jared R. Nussbaum,Caspian,Caspian Capital GP LLC,一個特拉華有限責任公司(「Caspian GP」),Adam Cohen和David Corleto(統稱爲「參與者」)。
As of the date hereof, the Participants have combined economic exposure in the Company of approximately 13.2% of the outstanding common units representing limited partnership interests of the Company ("Common Units"), through notional principal amount derivative agreements in the form of cash settled swaps with respect to the Common Units ("Derivative Agreements"). Funds advised by Nut Tree are party to Derivative Agreements with respect to an aggregate of 3,245,769 Common Units, and funds advised by Caspian are party to Derivative Agreements with respect to an aggregate of 1,916,597 Common Units. Funds advised by Caspian also hold $93.15 million principal amount of the Company's senior secured second lien notes maturing on February 15, 2028. Nut Tree GP serves as the general partner of Nut Tree, which serves as the investment advisor to certain funds. Mr. Nussbaum serves as the Chief Investment Officer and Managing Partner of Nut Tree and sole member of Nut Tree GP. Caspian GP serves as the general partner of Caspian, which serves as the investment advisor to certain funds. Messrs. Cohen and Corleto each serve as a control person of each of Caspian and Caspian GP.
截至本聲明日期,參與者對公司的合計經濟敞口約爲公司未發行的普通單位的13.2%,通過名義本金金額衍生協議形式的現金結算掉期協議(「衍生協議」)與普通單位相關。 Nut Tree建議的基金與公司的3245769普通單位相關的衍生協議,而Caspian建議的基金與公司的1916597普通單位相關的衍生協議。Caspian建議的基金還持有公司於2028年2月15日到期的第二優先留置的第二抵押權票據總額爲9315萬美元。 Nut Tree GP作爲Nut Tree的普通合夥人,爲某些基金的投資顧問提供服務。 Nussbaum先生擔任Nut Tree的首席投資官和董事合夥人,也是Nut Tree GP的唯一成員。Caspian GP作爲Caspian的普通合夥人,爲某些基金的投資顧問提供服務。Cohen先生和Corleto先生各自擔任Caspian和Caspian GP的控制人。
1 See Wells Fargo Midstream Energy Weekender: Q3'24 Midstream Earnings Preview October 11, 2024, pg. 7. Permission to use the Wells Fargo Midstream Energy Update was neither sought nor obtained.
1. 查看富國中游能源週末簡報:2024年第3季度中游收益預覽 2024年10月11日,第7頁。未經允許,不得使用富國中游能源更新。
2
2
SOURCE Nut Tree Capital Management and Caspian Capital
來源:Nut Tree Capital Management 和 Caspian Capital
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