Inergy, L.P. and Inergy Holdings, L.P. Complete Restructuring

Inergy, L.P. (NRG) and its publicly traded general partner Inergy Holdings, L.P. (NRGP) have won approval from Inergy Holdings' unitholders and completed their restructuring transaction. As a result, Inergy Holdings has been merged into Inergy, and Inergy Holdings units ceased trading as of the close of business on November 5, 2010.

At a special unitholder meeting held on November 2, approximately 50.5 million Inergy Holdings units (about 81% of all units), representing 99% of the votes cast by unitholders, voted in favor of the merger agreement, which was announced on August 9, 2010. Under the terms of the merger agreement, Inergy Holdings unitholders received 0.77 common units in Inergy for every Inergy Holdings unit they owned. Cash was paid for any fractional units. The incentive distribution rights and other economic interests owned by Inergy Holdings were transferred to Inergy, resulting in "a single, streamlined entity," according to management.

Management expects that the transaction will benefit unitholders of both entities and attract a broader investor base through a lower cost of capital, improved opportunities for growth, greater liquidity, and increased investor transparency via a simplified ownership structure. Inergy Holdings is the fourth of the ten GP MLPs formed in 2005-2006 to leave the market; three others (Buckeye GP Holdings, Enterprise GP Holdings, and Penn Virginia GP Holdings) have announced their intention to undertake similar transactions.

Click here for the press release announcing the unitholder vote

Click here for the press release announcing the merger agreement

Click here for an Inergy presentation describing the transaction