Kinder Morgan Management Announces Exercise Of Underwriters’ Option To Purchase Additional Shares

Kinder Morgan Management, LLC (NYSE: KMR) today announced that the underwriters of its recently completed public offering of 8,800,000 shares have exercised in full their option to purchase an additional 1,320,000 shares. Barclays and BofA Merrill Lynch acted as joint book-running managers, and Credit Suisse, Deutsche Bank Securities, J.P. Morgan, RBC Capital Markets and UBS Investment Bank acted as co-managers for the offering. The exercise price for the additional shares is $71.85 per share, the same as the price at which the 8,800,000 shares were sold to the underwriters.

Total net proceeds from the sale of the 10,120,000 shares are approximately $726.9 million. KMR intends to use all of the proceeds from the sale of shares to purchase a corresponding number of i-units from Kinder Morgan Energy Partners, L.P. (NYSE: KMP), and KMP plans to use the proceeds from KMR’s purchase of such i-units to pay a portion of the purchase price for its recently completed drop down transaction.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.

KMR is a limited partner in KMP and manages and controls its business and affairs. KMR has no operating assets and is a Kinder Morgan company. Kinder Morgan is the largest midstream and the third largest energy company in North America with a combined enterprise value of approximately $100 billion. It owns an interest in or operates approximately 75,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO ₂ and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. Kinder Morgan, Inc. (NYSE: KMI) owns the general partner interest of Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and El Paso Pipeline Partners, L.P. (NYSE: EPB), along with limited partner interests in KMP, Kinder Morgan Management, LLC (NYSE: KMR) and EPB. For more information please visit www.kindermorgan.com.

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Kinder Morgan believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include those enumerated in Kinder Morgan's Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.

1 2 Next › Last »