NEW YORK ( The Deal) -- Spectra Energy Partners LP (SEP) of Houston said Tuesday, Aug. 6, it agreed to buy U.S. natural gas transmission, storage and liquids assets from affiliate Spectra Energy Corp. (SE), also of Houston, for $12.3 billion, making Spectra Energy Partners one of the country's top pipeline and storage master limited partnerships.
The price includes $2.2 billion in cash and 172 million in newly issued limited partner units and 3.5 million in newly issued general partner units worth $7.6 billion based on Spectra Energy Partners' unit price yesterday. Spectra Energy Partners also will assume about $2.5 billion of acquired asset debt.
Spectra Energy Partners said the transaction's 2014 Ebitda multiple is 9.3 times based on the volume weighted average unit price of $36.12 for the 10 days ending June 11, when Spectra Energy announced its plans for the drop-down. The entities expect to close the deal by year's end.
Analysts at Tudor Pickering Holt & Co. Securities Inc. said the deal is at a higher multiple than Spectra Energy first indicated and based on Spectra's current stock price, it works out to 10.4 times. "Robust U.S. transmission growth backlog provides growth visibility for SEP
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