The acquisition, which is anticipated to close by the end of March 2011, will increase El Paso Pipeline Partners’ interest in SNG to 82%.
El Paso has granted El Paso Pipeline Partners a 45-day option to acquire up to an additional 3% interest in SNG at a price of approximately $26.7m per 1% interest purchased.
El Paso Pipeline Partners general partner president and CEO Jim Yardley said that in addition to providing immediate accretion to our unit holders, this acquisition increases the company’s interest in SNG.
The company expects to finance the transaction in a manner consistent with its current and target capital structure, which may include debt incurred under the partnership’s revolving credit facility, the issuance of public securities and the issuance of a promissory note to El Paso.
