(Adds deal terms, CEO quote)
April 28 El Paso Pipeline Partners LP
said it would buy natural gas assets from Kinder Morgan Inc
for about $2 billion, including $1.01 billion of debt.
El Paso Pipeline said as part of the deal, it would acquire
a 50 percent interest in Ruby Pipeline, a 50 percent interest in
Gulf LNG and a 47.5 percent interest in Young Gas Storage.
The deal, which was previously announced, is expected to
close in May.
El Paso, a master limited partnership (MLP) with a general
partner owned by Kinder Morgan Inc, plans to fund the deal with
with EPB units issued to Kinder Morgan Inc as well as proceeds
from debt or equity issues.
"These assets will generate substantial, stable cash flow to
EPB unitholders for many years to come, and KMI will reduce its
debt outstanding and continue to participate in the cash flows
from these assets through its general and limited partner
interests in EPB," Kinder Morgan Chief Executive Rich Kinder
said in a statement.
MLPs pay no federal taxes and pass profits to investors
called unitholders. The partnerships are favored by energy
companies for tax efficiency, an advantage that lowers the cost
(Reporting by Ankit Ajmera in Bangalore; Editing by Savio
D'Souza, Bernard Orr)