USA: El Paso Pipeline to Buy Plains Pipeline, Additional Interest In CIG

El Paso Pipeline to Buy Plains Pipeline, Additional Interest In CIG

El Paso Pipeline Partners announced today that it has agreed to acquire the remaining 14-percent interest in Colorado Interstate Gas Company (CIG) and all of Cheyenne Plains Investment Company, which owns Cheyenne Plains Gas Pipeline Company, from El Paso Corporation 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.

LNG World News Staff, May 18, 2012

Share this article

Follow LNG World News

Events>

<< Jan 2018 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

Singapore Maritime Technology Conference and Exhibition (SMTC) 2018

The 3rd Singapore Maritime Technology Conference and Exhibition (SMTC) 2018…

read more >

CWC Japan LNG & Gas Summit

The inaugural CWC Japan LNG & Gas Summit, with participation and support from METI, JERA, Tokyo Gas and IEEJ, is the dedicated platform for international suppliers…

read more >

Asia Pacific Maritime and Offshore Exhibition 2018

7 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia…

read more >

CWC 2nd Papua New Guinea Petroleum & Energy Summit

The 2nd CWC Papua New Guinea Petroleum and Energy Summit is held under the patronage of the Prime Minister of Papua New Guinea…

read more >