Natural gas producer
said Friday that it plans to sell its ANR Pipeline, Michigan storage assets, and a 50% interest in Great Lakes Gas Transmission for about $3.39 billion.
The assets will be acquired by
and limited partnership TC PipeLines.
The deal also includes the assumption of debt of $744 million, bringing the total value of the deal to about $4.14 billion.
"The sale of ANR Pipeline, our Michigan storage assets and our interest in Great Lakes is a transformational event for El Paso," said Doug Foshee, El Paso's president and chief executive.
"Coupled with the restructuring efforts over the last three years, this transaction immediately elevates our credit statistics to a level that is at or very near an investment grade level, one of our primary long-term objectives," Foshee said.
El Paso expects the transaction will be neutral to slightly accretive to earnings per share. The deal is projected to close in the first quarter.
Shares of El Paso were trading up 95 cents, or 6.4%, to $15.77.