Williams to partly finance acquisition with debt, arranges interim loan

By Andrea Heisinger

New York, March 20 - Williams Partners, LP plans to fund the $1.78 billion cash portion of its acquisition of Caiman Eastern Midstream LLC with equity, debt and available cash, according to a company press release, and it has committed to a $1.78 billion interim liquidity facility with UBS Investment Bank.

Williams Partners discussed the $2.5 billion acquisition of Caiman Eastern Midstream from Caiman Energy in a conference call and press releases on Tuesday.

The acquisition is intended to provide Williams Partners with access to natural gas liquids in the Marcellus Shale.

Both Williams Partners and Williams Cos., Inc., which owns 72% of Williams Partners, have committed to retaining their investment-grade ratings, according to the release and a slide from the conference call.

Williams is investing $1 billion in Williams Partners for the Caiman acquisition by purchasing about 16.3 million of its limited-partner units. Williams plans to fund this investment partly with debt and available cash.

Williams Partners is a master limited partnership that owns interests in three natural gas pipelines. Williams is an energy infrastructure company. Both are based in Tulsa, Okla.

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