El Paso Pipeline Partners Announces Exercise of Underwriters’ Option to Purchase Additional Common Units (USA)

El Paso Pipeline Partners, L.P. announced that the underwriters of its common unit offering exercised their option to purchase 1,379,900 additional common units at a public offering price of $33.45 per unit, less underwriting discounts and commissions. The option was granted in connection with the partnership’s public offering of 10,500,000 common units, which was completed in November 2010. The closing of the over-allotment option is expected to occur December 17, 2010.

The partnership intends to use the total net proceeds from the underwriters’ exercise of their option to purchase 1,379,900 common units, including the general partner’s proportionate capital contribution, of approximately $45.6 million to reduce outstanding borrowings under its revolving credit facility.

Barclays Capital, BofA Merrill Lynch, Citi, Morgan Stanley, and Wells Fargo Securities are acting as joint book-running managers of the offering. Credit Suisse, Deutsche Bank, Raymond James and UBS Investment Bank are acting as co-managing underwriters of the offering.

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 49 percent limited partner interest and 2 percent general partner interest in the partnership. El Paso Pipeline Partners, L.P. owns Wyoming Interstate Company (WIC), Southern LNG Company, L.L.C. (SLNG), El Paso Elba Express Company, L.L.C. (Elba Express), a 60 percent interest in Southern Natural Gas Company (SNG), and a 58 percent interest in Colorado Interstate Gas Company (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.

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Source: El Paso Pipeline Partners, December 16, 2010;

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