Aug 16 Boardwalk Pipeline Partners LP
said it and a unit of its general partner Loews Corp have
agreed to form a joint venture to buy pipeline transportation
company PL Midstream LLC for $625 million in cash, making a
foray into the natural gas liquids business.
Boardwalk said it will take a 33 percent stake in the joint
venture, while a wholly owned unit of Loews, Boardwalk Pipelines
Holding Corp (BPHC), will own 67 percent.
The deal will be funded through a $225 million bank loan and
equity contributions from the two partners, with BPHC expected
to contribute about $268 million and Boardwalk $132 million.
The joint venture is buying PL Midstream LLC from private
equity firm Lindsay Goldberg LLC's portfolio company PL
"The PL Midstream acquisition supports our long-term growth
strategy of diversifying into industries that complement our
core natural gas pipeline and storage businesses," Boardwalk
Chief Executive Stan Horton said in a statement.
Barclays was the financial adviser to Boardwalk and Wells
Fargo Securities advised PL Midstream on the deal, which is
expected to close in late September or early October.
Boardwalk Pipeline shares closed at $27.09, while those of
Loews closed at $40.52 on Thursday on the New York Stock