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Regency to buy Southern Union Gathering's pipeline affiliate for $1.5 bln
Feb 28 (Reuters) - Regency Energy Partners LP said it would buy Southern Union Gathering Company's natural gas pipeline affiliate for $1.5 billion to expand its presence in the Permian Basin in the southern United States.
Regency expects the deal with the affiliate, Southern Union Company, to be neutral or add slightly to its 2013 earnings.
Regency will fund the deal by issuing $750 million of common units and $150 million of Class F common units.
The deal will include the purchase of a 5,600 mile (9,012 km) gathering system and about 500 MMcf/d of processing and treating facilities in west Texas and New Mexico for natural gas and natural gas liquids.
Southern Union Company is a jointly owned affiliate of Energy Transfer Equity LP and Energy Transfer Partners LP. Its interstate pipelines transport natural gas from the producing areas to markets in the Southeast, Midwest and Great Lakes region.
JPMorgan was the financial adviser and Locke Lord LLP was legal counsel to Regency for the deal.
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