Inter Pipeline Fund Announces Corporate Restructuring And Distribution Increase

Inter Pipeline Fund announced that it has completed several internal transactions related to the restructuring of its current limited partnership structure to position the business for a planned conversion to a corporate form. Inter Pipeline has indirectly purchased Pipeline Management Inc, its General Partner, for initial consideration valued at $170 million, plus adjustments, and a future second instalment valued at $170 million which is partly contingent on the outcome of certain organic growth projects currently under development. These transactions (the Internalization Transactions) have been designed to eliminate all future management, acquisition, divestiture and incentive fees payable to an external manager. In conjunction with the Internalization Transactions, Inter Pipeline has announced a distribution increase of $0.03 per unit on an annualized basis. Unitholders of record as of June 21, 2013 will be eligible for Inter Pipeline's new, higher level of cash distributions with initial payment on or about July 15, 2013. This increase will result in annual distribution payments of $1.14 per unit.