By Devika Patel
Knoxville, Tenn., March 17 - Boardwalk Pipeline Partners, LP has arranged to sell $686 million of units in a private placement.
The company will sell $686 million of class B limited partnership units to Loews Corp. Loews also will contribute an additional $14 million on behalf of Boardwalk Pipeline's general partner, a Loews subsidiary, to maintain its 2% general partner interest.
The units carry a 4% coupon and are convertible into 22,866,667 common units at $30.00 per unit after five years.
Settlement is expected June 30.
Proceeds will be used for pipeline expansion projects.
Boardwalk is an Owensboro, Ky., interstate transportation and natural gas storage company.
| Issuer: | Boardwalk Pipeline Partners, LP
|
| Issue: | Class B limited partnership units
|
| Amount: | $686 million
|
| Coupon: | 4%
|
| Conversion price: | $30.00
|
| Warrants: | No
|
| Investor: | Loews Corp.
|
| Pricing date: | March 17
|
| Settlement date: | June 30
|
| Stock symbol: | NYSE: BWP
|
| Stock price: | $21.45 at close March 14
|
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