SemGroup Corporation (NYSE:SEMG) announced that it has entered into an agreement for a private placement of 350,000, 7% series A cumulative perpetual convertible preferred shares at $1,000 per share for gross proceeds of $350,000,000 on January 16, 2018. The transaction will include participation from new investor Warburg Pincus LLC through its affiliated funds and other investors including Tortoise Capital Advisors L.L.C., and Atlantic Trust Advisors, Inc. Tortoise Capital Advisors L.L.C. will invest through Tortoise Direct Opportunities Fund, LP, Tortoise Energy Infrastructure Corporation, Tortoise MLP Fund, Inc, Tortoise Power and Energy Infrastructure Fund, Inc., and Tortoise Pipeline & Energy Fund, Inc. Affiliate of Warburg Pincus LLC will invest for 300,000 shares, Atlantic Trust Advisors, Inc will invest for 25,000 shares and Tortoise Capital Advisors L.L.C will invest for 25,000 shares. The preferred shares are convertible into 10,606,061 common stock of the company based on a conversion price of $33 per share after 18 months, at the purchasers’ option, and after three years at the company’s option, subject to certain conditions. The preferred shares will pay quarterly dividends which, at the company’s option, may be paid in additional preferred shares in respect of any fiscal quarter ending on or prior to June 30, 2020. The transaction is expected to close by the end of January 19, 2018, and is subject to certain closing conditions. The net proceeds from the transaction are expected to be approximately $343,000,000. The transfer of shares of the company restricted for two years. The company will incur offering and transaction expenses as part of the transaction. As part of the transaction, John Rowan, Managing Director at Warburg Pincus LLC will act as a non-voting observer to the company’s board of directors.