Energy infrastructure company Williams has secured a major capital commitment to advance its portfolio of behind-the-meter Power Innovation projects. The company announced it has signed an agreement led by funds managed by Blackstone Credit & Insurance, in partnership with Apollo and insurance vehicles and accounts managed by KKR, for $5.34 billion in committed capital. The funding is intended to support the development of Williams’ five previously announced Power Innovation projects.
Under the terms of the agreement, Blackstone and its partners will acquire a 49% noncontrolling equity interest in the five projects. The Power Innovation portfolio includes assets identified as Socrates, Apollo, Aquila, Socrates the Younger and Neo. Williams will retain the remaining 51% equity interest in the projects, along with ongoing commercial and operational control.
The parties indicated that the $5.34 billion commitment is structured to include $4.4 billion representing 49% of the expected total growth capital expenditures associated with the Power Innovation projects. The balance of the commitment, approximately $0.9 billion, will be provided to Williams as additional consideration in connection with the transaction.
Executives from Blackstone Credit & Insurance highlighted Williams’ role in addressing rising power needs. In a joint statement, Robert Horn, global head of Infrastructure & Asset-Based Credit at Blackstone, and Rick Campbell, senior managing director at Blackstone Credit & Insurance, described Williams as a leader in meeting the country’s rapidly growing power demands. They noted that the company provides critical hard assets supporting the buildout of AI infrastructure and said that the firm is supplying Williams with a scaled, high-grade capital solution for these projects.
Citi is acting as financial advisor to Williams on the transaction, while Davis Polk & Wardwell is serving as Williams’ legal counsel. On the investor side, Morgan Stanley is acting as financial advisor to Blackstone, and Kirkland & Ellis is serving as Blackstone’s legal counsel. A photo released in connection with the announcement features the Socrates facility, one of the Power Innovation projects included in the investment.
