SOURCE: El Paso Pipeline Partners

El Paso Pipeline Partners

November 16, 2010 08:43 ET

El Paso Pipeline Partners Announces Pricing of Public Offering of Common Units

HOUSTON, TX--(Marketwire - November 16, 2010) -  El Paso Pipeline Partners, L.P. (NYSE: EPB) today announced it has priced a public offering of 10,500,000 common units at $33.45 per common unit. Net proceeds from this offering, including the general partner's proportionate capital contribution, will be used by El Paso Pipeline Partners as partial consideration for the previously announced acquisition of the remaining 49-percent interests in both Southern LNG, L.L.C. (SLNG) and El Paso Elba Express Company, L.L.C. (Elba Express) as well as an additional 15-percent interest in Southern Natural Gas Company (SNG) from El Paso Corporation (NYSE: EP). Following the acquisition, El Paso Pipeline Partners will own 100 percent of SLNG and Elba Express and a 60-percent interest in SNG.

The offering is scheduled to close November 19, 2010. El Paso Pipeline Partners also granted the underwriters a 30-day option to purchase up to an aggregate of 1,575,000 additional common units. If the underwriters exercise their option to purchase additional units, the partnership intends to use the net proceeds to reduce outstanding borrowings under its revolving credit facility.

Barclays Capital, BofA Merrill Lynch, Citi, Morgan Stanley, and Wells Fargo Securities are acting as joint book-running managers of the offering. Credit Suisse, Deutsche Bank, Raymond James and UBS Investment Bank are acting as co-managing underwriters of the offering. A copy of the prospectus supplement and accompanying base prospectus relating to the offering may be obtained from any of the underwriters, including:

Barclays Capital Inc. 
c/o Broadridge Financial Solutions 
1155 Long Island Avenue 
Edgewood, NY 11717 
Email: Barclaysprospectus@broadridge.com
Toll-free number: 1-888-603-5847 

Merrill Lynch, Pierce, Fenner & Smith Incorporated
Attn: Prospectus Department
4 World Financial Center
New York, NY 10080
Email: Prospectus.Requests@ml.com

Citigroup Global Markets Inc.
Attn: Prospectus Department
Brooklyn Army Terminal
140 58th Street, 8th Floor
Brooklyn, NY 11220
Email: batprospectusdept@citi.com
Toll-free number: 800-831-9146

Morgan Stanley & Co. Incorporated
 Attn: Prospectus Department
180 Varick Street, 2nd floor
New York, NY 10014
Email: prospectus@morganstanley.com
Toll-free number: 866-718-1649

Wells Fargo Securities, LLC 
Attention: Equity Syndicate Dept. 
375 Park Ave. 
New York, NY, 10152 
Email: cmclientsupport@wellsfargo.com
Toll-free number: 800 326-5897 

You may also obtain these documents for free when they are available by visiting the SEC's Web site at www.sec.gov

This press release shall not constitute an offer to sell or the 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 an 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, 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 Southern LNG Company, L.L.C., which owns the Elba Island LNG storage and regasification terminal near Savannah, Georgia, a 51 percent interest in El Paso Elba Express Company, L.L.C., and a 45 percent interest in Southern Natural Gas Company. Both Elba Express and SNG are interstate pipeline systems serving the southeastern region of the United States. For more information about El Paso Pipeline Partners, visit www.eppipelinepartners.com.

Cautionary Statement Regarding Forward-Looking Statements

Statements about the offering may be forward-looking statements as defined under federal law. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside the control of El Paso Pipeline Partners, and a variety of risks that could cause results to differ materially from those expected by the management of El Paso Pipeline Partners. El Paso Pipeline Partners undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

Contact Information

  • Contacts:
    Investor and Media Relations
    Bruce L. Connery
    Vice President
    (713) 420-5855

    Media Relations
    Bill J. Baerg
    Manager
    (713) 420-2906