El Paso Corporation has granted El Paso Pipeline a 90-day option to purchase up to an additional 4% interest in SNG at a price of approximately $25m per percent interest purchased.
Jim Yardley, president and CEO of El Paso Pipeline’s general partner, said: “We are pleased to announce the partnership’s fourth acquisition from El Paso Corporation, which further consolidates our growing asset base.
“The acquisition, which is immediately accretive to distributable cash flow, increases our interest in the Southeast’s premier natural gas transmission franchise. SNG’s strategically located assets are supported by consistent, strong cash flows and continued organic growth opportunities.”
El Paso Pipeline expects to finance the transaction in a manner consistent with its current and target capital structure, which may include debt incurred under the company’s revolving credit facility, the issuance of public securities and the issuance of a promissory note to El Paso Corporation. The transaction is expected to close by the end of June 2010.
