For its cash, Houston-based EIG will receive a mix of preferred and common units in entities that control the Rice Energy's midstream business.
The preferred shares have an 8% distribution rate but Rice has the option to pay that distribution in kind for the first two years.
Rice will use $75 million in proceeds to pay down all of its debt incurred by the midstream unit and the remaining $300 million will be used by Rice to fund its drilling programme in the Marcellus and Utica shales.
EIG
