USA: El Paso Pipeline Partners Announces Public Offering of Common Units
El Paso Pipeline Partners, L.P. announced that it plans to sell 12,000,000 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 1,800,000 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 an additional 22-percent general partner interest in Southern Natural Gas Company (SNG) from El Paso Corporation. If the underwriters exercise their option to purchase additional units, the partnership intends to use the additional net proceeds as partial consideration for the purchase of up to an additional 3-percent general partner interest in SNG from El Paso Corporation pursuant to the partnership’s option to purchase such interest and/or to reduce outstanding borrowings under its revolving credit facility.
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. Prior to the closing of the acquisition, El Paso Pipeline Partners, L.P. owns Wyoming Interstate Company (WIC), Southern LNG Company, L.L.C. (SLNG), 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.
Source: El Paso Pipeline Partners, March 9, 2011;