Kinder Morgan gets committed financing from Barclays for acquisition

By Angela McDaniels

Tacoma, Wash., Aug. 11 – Kinder Morgan Inc. has secured committed financing from Barclays for the cash portion of a planned acquisition, according to a company news release.

The company will acquire all of the outstanding equity securities of Kinder Morgan Energy Partners, LP, Kinder Morgan Management, LLC and El Paso Pipeline Partners, LP.

The company said it has reviewed the proposed transaction with the rating agencies and expects the combined entity to be rated investment grade. Kinder Morgan currently is rated speculative grade.

The Kinder Morgan companies will put in place cross guarantees among and between the Kinder Morgan entities (with limited exceptions) in order to create a single creditor class and eliminate the structural subordination, according to the news release.

Houston-based Kinder Morgan owns the general partner interests of Kinder Morgan Energy Partners and El Paso Pipeline Partners, limited partner interests in those companies and shares in Kinder Morgan Management.

The combined Kinder Morgan entities own an interest in or operate pipelines that transport natural gas, gasoline, crude oil, CO2 and other products and terminals that store petroleum products and chemicals.

© 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.