SOURCE: El Paso Pipeline Partners

El Paso Pipeline Partners

November 16, 2010 16:43 ET

El Paso Pipeline Partners Announces Pricing of $750 Million Debt Offering

HOUSTON, TX--(Marketwire - November 16, 2010) - El Paso Pipeline Partners Operating Company, L.L.C., a wholly owned operating subsidiary of El Paso Pipeline Partners, L.P. (NYSE: EPB), today announced it has priced an offering of $750 million aggregate principal amount of senior notes in two separate tranches, with $375 million of 4.10% senior notes due 2015 and $375 million of 7.50% senior notes due 2040. Net proceeds from the offering will be used as partial consideration for the previously announced acquisition of the remaining 49-percent member interests in both Southern LNG Company, L.L.C. (SLNG) and El Paso Elba Express Company, L.L.C. (Elba Express) and an additional 15-percent interest in Southern Natural Gas Company (SNG) from El Paso Corporation (NYSE: EP), to repay the Elba Express project financing term loan, and to reduce outstanding borrowings under its revolving credit facility. Following the acquisition, El Paso Pipeline Partners will own 100-percent of SLNG and Elba Express and a 60-percent interest in SNG.

RBS, BNP PARIBAS, Deutsche Bank, and J.P. Morgan are acting as joint book-running managers of the offering. A copy of the prospectus supplement and prospectus relating to this offering may be obtained from any of the underwriters, including:

RBS Securities Inc.
Attention: Debt Capital Markets Syndicate
600 Washington Boulevard
Stamford, Connecticut
Telephone: 866-884-2071

BNP Paribas Securities Corp.
Attn: Syndicate Desk
787 Seventh Avenue
New York, New York 10019
Telephone: 800-854-5674

Deutsche Bank Securities Inc. at Prospectus Department
c/o Harborside Financial Center
100 Plaza One
Jersey City, New Jersey 07311
Email address: prospectus.cpdg@db.com
Telephone: 800-503-4611

J.P. Morgan Securities LLC
383 Madison Avenue
New York, New York 10179
Attn: High Grade Syndicate Desk
Telephone: 212-834-4533

You may also obtain these documents for free when they are available by visiting the Securities and Exchange Commission's web site at www.sec.gov.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering may be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

El Paso Pipeline Partners, L.P. is a Delaware limited partnership formed by El Paso Corporation to own and operate natural gas transportation pipelines and storage assets. El Paso Corporation currently owns a 52-percent limited partner interest and 2 percent general partner interest in the partnership. Prior to the closing of the acquisition, El Paso Pipeline Partners, L.P. owns Wyoming Interstate Company, L.L.C., an interstate pipeline system serving the Rocky Mountain region, a 58 percent interest in Colorado Interstate Gas Company which operates in the Rocky Mountain region, a 51 percent interest in SLNG, which owns the Elba Island LNG storage and regasification terminal near Savannah, Georgia, a 51 percent interest in Elba Express, and a 45 percent interest in SNG Company. Both Elba Express and SNG are interstate pipeline systems serving the southeastern region of the United States.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements regarding future events. All forward-looking statements are based on the Partnership's beliefs as well as assumptions made by and information currently available to the Partnership. These statements reflect the Partnership's current views with respect to future events and are subject to various risks, uncertainties and assumptions. These risks, uncertainties and assumptions are discussed in El Paso Pipeline Partners, L.P.'s 2009 annual report on Form 10-K and subsequent filings with the Securities and Exchange Commission.

Contact Information

  • Contacts:

    Investor-Media Relations
    Bruce Connery
    Vice President
    (713) 420-5855

    Media Relations
    Bill Baerg
    Manager
    (713) 420-2906