Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers K > Headlines for Kinder Morgan Energy Partners, LP > News item |
Kinder Morgan Energy Partners plans $2 billion facility, other debt
By Angela McDaniels
Tacoma, Wash., Aug. 6 - Kinder Morgan Energy Partners, LP expects to use debt and equity issuances and borrowings under a new $2 billion credit facility to help fund some pipeline acquisitions, according to a company news release.
The company agreed to acquire Tennessee Gas Pipeline Co. and a 50% interest in El Paso Natural Gas Co. from Kinder Morgan, Inc. for about $6.22 billion, including about $1.8 billion of assumed debt at Tennessee Gas Pipeline and about $560 million of proportional debt at El Paso Natural Gas.
Kinder Morgan Energy Partners plans to fund 10% of the transaction value, net of debt assumed, with Kinder Morgan Energy Partners units that will be issued to Kinder Morgan at closing valued at about $387 million. The remainder is expected to be funded with the credit facility borrowings and the equity and debt issuances.
The company said that any issuances of equity or debt after the transaction closes and the proceeds of some planned asset sales will be used to repay the credit facility.
The acquisition is expected to close this month.
Kinder Morgan Energy Partners is a pipeline transportation and energy storage company based in Houston.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.