The $330m puchase price consists approximately $66m in newly-issued partnership units, the assumption of approximately $7.4m in debt owed to a subsidiary of Spectra Energy Corp, and approximately $256.6m in cash.
Spectra Energy Partners said that the acquisition will increase its interest in Gulfstream to 49%.
Gulfstream owns a 745-mile interstate natural gas transportation system, which extends from Pascagoula, Mississippi, and Mobile, Alabama, across the Gulf of Mexico into Florida.
Spectra Energy Partners expects the transaction to be accretive to cash available for distribution on a per unit basis.
Spectra Energy Partners president and CEO Gregory Rizzo said that Gulfstream’s pipeline is a well-positioned asset with a long-term, fee-based contracts in the Florida market.
