El Paso Pipeline Partners, L.P. (NYSE: EPB) today announced that the underwriters of its recently completed public offering of 7,100,000 common units have exercised in full their option to purchase an additional 1,065,000 common units. Wells Fargo Securities, Barclays, Citigroup, Credit Suisse, J.P. Morgan and UBS Investment Bank acted as joint book-running managers, and Deutsche Bank Securities and RBC Capital Markets acted as co-managers for the offering. The public offering price for the additional common units is $34.34 per unit, the same price at which the 7,100,000 common units were sold.
Both the 7,100,000 common unit offering and the additional 1,065,000 common unit offering closed on Sept. 14, 2012. Total net proceeds from the sale of the 8,165,000 common units are approximately $277.5 million, including its general partner’s proportionate capital contribution. EPB intends to use the proceeds from this offering to repay all outstanding borrowings under the Cheyenne Plains credit agreement, to repay certain short-term debt and for general partnership purposes. EPB may also apply some of the net proceeds to reduce borrowings under its revolving credit facility.
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.
El Paso Pipeline Partners (NYSE: EPB) is a publicly traded pipeline limited partnership. It owns an interest in or operates more than 13,000 miles of interstate natural gas transportation pipelines in the Rockies and the Southeast, natural gas storage facilities with a capacity of nearly 100 billion cubic feet and LNG assets in Georgia. The general partner of EPB is owned by Kinder Morgan, Inc. (NYSE: KMI). 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. 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 http://www.kindermorgan.com and www.eppipelinepartners.com.This news release includes forward-looking statements. Although EPB 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 are enumerated in EPB’s Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.