The deal is expected to close in the fourth fiscal quarter of 2012. We do have to go through Hart-Scott-Rodino and it’s also contingent on the bond exchange.
Kind of flipping forward to slide six, that’s just a – kind of structurally what we look like in showing the – this transaction. You can see the – we expect that for – in exchange for our $1.2 billion in senior notes, our note holders will receive $1 billion in new Suburban notes and $200 million in cash. Suburban is acquiring the entity Inergy Propane, LLC. Prior to the transaction, we will move our West Coast business and our Inergy Services business, which is our wholesale marketing and NGL supply and logistics business, out of Inergy Propane, LLC before the transfer.
Flipping to the next page, just gives you a quick kind of schematic of what we look like after the transaction. As you can see the – we retain the investment – or our unit holders retain an investment in Suburban. We have significantly reduced our debt. And then the remaining operating businesses, so, at the end of the day, NRGY will own 75% of the limited partnership interest in NRGM, the general partner in the incentive distribution rights in NRGM, and will retain the operating businesses of U.S. Salt, Tres Palacios, our West Coast operation, and Inergy Services, which again is our wholesale NGL supply marketing and logistics business.
Flipping to page eight, I think I’ve made most of these points, but giving effect to this transaction, NRGY becomes a pure play midstream MLP. Again, I think I’ve talked about the – what we own and what we’ll retain. This significantly strengthens the balance sheet of NRGY. We expect this to make us more competitive from a cost of capital standpoint and we do believe that this will have a positive impact on the growth of our midstream business.Read the rest of this transcript for free on seekingalpha.com