El Paso Pipeline buys added stakes for $736M
By
Associated Press
September 17, 2008
|
El Paso Pipeline Partners L.P. is paying $736 million for additional stakes in two gas companies owned by its general partner, El Paso Corp., the company said Wednesday.
It is buying an added 30 percent stake in Colorado Interstate Gas Co., boosting it to a total of 40 percent, and an additional 15 percent interest in Southern Natural Gas Co., raising that to 25 percent.
The company, which owns and operates natural gas transportation pipelines and storage assets, said it is financing the purchase in part with proceeds from a new $175 million private placement of debt.
The purchase is expected to close at the same time as the debt financing later this month and is expected to boost the company's distributable cash flow. As a result, El Paso Pipeline plans to recommend the board of the general partner increase its quarterly distribution by 8.5 percent to 32 cents per unit starting next year.
El Paso Pipeline Partners boosted its last quarterly distribution, which was paid in August, by 2.6 percent, to 29.5 cents.
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