The acquisition will increase El Paso Pipeline Partners’s interest in the Colorado Interstate Gas Company (CIG) to 40% and its interest in the Southern Natural Gas Company (SNG) to 25%.
In conjunction with the acquisition, El Paso Pipeline Partners has announced an agreement for $175 million of private placement debt with an average annual rate of 7.6%, due 2011 through 2013.
Jim Yardley, president and chief executive officer for the general partner of El Paso Pipeline Partners, said: The partnership is acquiring additional interests in premier market and supply-related pipeline assets that generate stable cash flows. This purchase improves an already excellent organic growth platform. Based solely on our current backlog of committed growth projects, we expect to achieve 8% to 10% average annual growth in distributable cash flow through 2012.
