NEW YORK, Nov. 18, 2019 /CNW/ -- Pomerantz LLP is investigating claims on behalf of investors of Third Coast Midstream, LLC f/k/a American Midstream Partners, LP ("American Midstream" or the "Company") (NYSE: AMID). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether American Midstream and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On July 27, 2018, American Midstream declared a 75 percent reduction in the Company's quarterly common unit distribution. On this news, American Midstream's unit price declined over 42 percent, falling from $11.55 to $6.60 on July 27, 2018.
Then, on December 31, 2018, American Midstream reported that because of an amendment to its credit facility agreement, the Company did not expect to make any distributions to its unit holders in the upcoming fourth quarter of 2018 and would continue to withhold said distributions until its consolidated total leverage ratio was reduced. On this news, American Midstream's unit price declined $1.30, or 30 percent, closing at a price of $3.03 per unit on December 31, 2018.
On March 18, 2019, American Midstream publicly disclosed that it had entered into a merger agreement with a subsidiary of ArcLight Capital Partners, LLC ("ArcLight"), American Midstream's controlling shareholder, pursuant to which American Midstream unitholders would receive $4.50 per unit. As a result of the distribution cuts put in place by virtue of ArcLight's de facto status as the controlling force behind the Company, the merger price represented a 61 percent discount to the Company's unit price immediately prior to the quarterly distribution reduction.
On July 23, 2019, American Midstream announced the closing of the merger.
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Robert S. Willoughby
888-476-6529 ext. 9980
SOURCE Pomerantz LLP