By Kenneth Lim
Boston, Sept. 23 - El Paso Pipeline Partners, LP placed $175 million of senior unsecured notes due 2011 to 2013, according to a filing with the Securities and Exchange Commission.
The deal is comprised of $37 million of series A 7.76% senior notes due September 2011, $15 million of series B 7.93% senior notes due September 2012, $88 million of 8% series C senior notes due September 2013 and $35 million of Libor plus 350 basis points series D senior notes due Sept. 2012.
The notes will be guaranteed by El Paso Pipeline.
Investors in the notes were insurance companies and other financial institutions.
The proceeds will be used to help fund the partnership's planned acquisition of an additional 30% interest in Colorado Interstate Gas Co. and an additional 15% interest in Southern Natural Gas Co. from El Paso Corp. The acquisition with cost $736 million, and it will also be funded with $65 million from an existing revolving credit facility, $10 million of notes to El Paso Corp. and about 27.76 million common units of the partnership.
Houston-based El Paso Pipeline is a limited partnership formed by El Paso Corp. to own and operate natural gas transportation pipelines and storage assets.
| Issuer: | El Paso Pipeline Partners, LP
|
| Securities description: | Senior unsecured notes
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| Settlement date: | Oct. 3
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|
|
| Series A notes
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| Amount: | $37 million
|
| Maturity: | September 2011
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| Coupon: | 7.76%
|
| Price: | Par
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| Yield: | 7.76%
|
| Call: | Make-whole call
|
|
|
| Series B notes
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| Amount: | $15 million
|
| Maturity: | September 2011
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| Coupon: | 7.93%
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| Price: | Par
|
| Yield: | 7.93%
|
| Call: | Make-whole call
|
|
|
| Series C notes
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| Amount: | $88 million
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| Maturity: | September 2011
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 8%
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| Call: | Make-whole call
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|
|
| Series D notes
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| Amount: | $35 million
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| Maturity: | September 2011
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| Coupon: | Libor plus 350 bps
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| Price: | Par
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| Yield: | Libor plus 350 bps
|
| Call: | At 103 for first 18 months, at 102 in months 19 to 24, then at par
|
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