El Paso Pipeline Partners Agrees to Acquire Cheyenne Plains Pipeline and Additional Interest in Colorado Interstate Gas Compa...
18 Mai 2012 - 2:00PM
Marketwired
El Paso Pipeline Partners, L.P. (NYSE: EPB) announced today that it
has agreed to acquire the remaining 14-percent interest in Colorado
Interstate Gas Company, L.L.C. (CIG) and all of Cheyenne Plains
Investment Company, L.L.C., which owns Cheyenne Plains Gas Pipeline
Company, L.L.C. from El Paso Corporation (NYSE: EP) for $635
million and the assumption of approximately $242 million of
proportional debt.
The transaction, which is expected to close contemporaneously
with Kinder Morgan, Inc.'s acquisition of El Paso Corporation, will
be immediately accretive to distributable cash flow and is being
funded with approximately $571 million of cash from borrowings
under EPB's revolving credit facility and $64 million of equity
from the issuance of common units to El Paso Corporation. El Paso
Corporation will make an approximate $1 million general partner
capital contribution to maintain its 2 percent general partner
interest in El Paso Pipeline Partners, L.P.
The terms of the transaction were unanimously approved by the
Board of Directors of the general partner, El Paso Pipeline GP
Company, L.L.C., based in part on the unanimous approval and
recommendation of the Board's conflicts committee, which is
comprised entirely of independent directors. The conflicts
committee engaged Tudor, Pickering, Holt & Co. to act as its
independent financial advisor and to render a fairness opinion.
El Paso Pipeline Partners, L.P. is a Delaware limited
partnership formed by El Paso Corporation to own and operate
natural gas transportation pipelines and storage assets. El Paso
Corporation currently owns a 42 percent limited partner interest,
and the 2 percent general partner interest in the partnership.
Prior to the closing of this transaction, El Paso Pipeline
Partners, L.P. owns Wyoming Interstate Company, L.L.C. (WIC),
Southern LNG Company, L.L.C. (SLNG), Elba Express Company, L.L.C.
(Elba Express), Southern Natural Gas Company, L.L.C. (SNG), and an
86 percent interest in Colorado Interstate Gas Company, L.L.C.
(CIG). WIC and CIG are interstate pipeline systems serving the
Rocky Mountain region, SLNG owns the Elba Island LNG storage and
regasification terminal near Savannah, Georgia, and both Elba
Express and SNG are interstate pipeline systems serving the
southeastern region of the United States.
Cautionary Statement Regarding Forward-Looking
Statements
This release includes forward-looking statements and
projections. El Paso Pipeline Partners has made every reasonable
effort to ensure that the information and assumptions on which
these statements and projections are based are current, reasonable,
and complete. However, a variety of factors could cause actual
results to differ materially from the projections, anticipated
results or other expectations expressed in this release, including,
without limitation, our ability to complete any acquisitions from
El Paso Corporation or the timing of such transactions; the ability
of El Paso Corporation to close its merger transaction with Kinder
Morgan, Inc.; changes in the availability and cost of capital; and
other factors described in El Paso Pipeline Partners' (and its
affiliates') Securities and Exchange Commission filings. While
these statements and projections are made in good faith, El Paso
Pipeline Partners and its management cannot guarantee that
anticipated future results will be achieved. Reference must be made
to those filings for additional important factors that may affect
actual results. El Paso Pipeline Partners assumes no obligation to
publicly update or revise any forward-looking statements made
herein or any other forward-looking statements made, whether as a
result of new information, future events, or otherwise.
Contacts: Investor-Media Relations Bruce Connery Vice
President (713) 420-5855 Media Relations Bill Baerg Manager (713)
420-2906
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