El Paso Pipeline Partners, L.P. today announced that it plans to sell 10,000,000 common units in an underwritten public offering pursuant to an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission (SEC).
The partnership plans to grant the underwriters a 30-day option to purchase up to 1,500,000 additional common units.
The partnership currently intends to use the net proceeds of this offering, including the general partner’s proportionate capital contribution, as partial consideration for the previously announced acquisition of the remaining 49-percent interests in both Southern LNG, L.L.C. (SLNG) and El Paso Elba Express Company, L.L.C. (Elba Express) as well as an additional 15-percent interest in Southern Natural Gas Company (SNG) from El Paso Corporation .
Following the acquisition, El Paso Pipeline Partners will own 100 percent of SLNG and Elba Express and a 60-percent interest in SNG.
Additionally, the partnership currently intends to use the net proceeds of any exercise of the underwriters’ option to purchase additional units to reduce outstanding borrowings under its revolving credit facility.
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Source: El Paso Pipeline Partners , November 16, 2010