Tuesday, May 31, 2011

Boardwalk Partners prices public offering of six million common units

NEW YORK - Boardwalk Pipeline Partners, LP (NYSE: BWP) on May 27 announced that it priced the public offering of 6,000,000 common units at $29.33 per unit. Boardwalk expects the offering to close on June 2.

Boardwalk has granted the underwriters a 30-day option to purchase up to an additional 900,000 common units.

In connection with the offering, Boardwalk will receive net proceeds after offering expenses of approximately $173.5 million, including the general partner's proportionate capital contribution of $3.6 million to maintain its two percent general partner interest. Boardwalk expects to use the net proceeds from the offering, together with the amounts contributed by its general partner, to repay borrowings outstanding under the Partnership's revolving credit facility but may use some or all of the proceeds for general partnership purposes, including retirement of other long-term debt.

Barclays Capital, BofA Merrill Lynch, Citi, J.P. Morgan and Wells Fargo Securities are acting as joint book-running managers for the common unit offering. (Source: Business Wire, May 27, 2011)

Enterprise Products sells Energy Transfer units

HOUSTON, Texas - Oil and gas distributor Enterprise Products Partners LP said on May 23 that it expects to raise $169 million from a subsidiary's sale of 4.45 million units of Energy Transfer Equity LP.

The Houston company said it would use the money for general purposes including capital projects.

El Paso to split pipeline, exploration groups Into separate companies

HOUSTON - Energy company El Paso Corp. said on May 24 that it plans to separate into two publicly traded businesses by the end of the year.

The Houston company's stock jumped $1.18, or 6.2 percent, to $20.16 in afternoon trading.

The El Paso board approved plans to spin off its exploration and production business to its shareholders. The company said its shareholders would get a pro rata share of the stock in the spinoff company although specific terms were not disclosed.

The separation is subject to market, regulatory and tax approvals as well as final approval by the El Paso board.

After the spinoff, El Paso Corp. will include its pipeline group, its midstream group and its general and limited partner interests in El Paso Pipeline Partners LP. Doug Foshee will remain chairman and CEO.

The new publicly traded exploration and production business will be led by the unit's president, Brent Smolik, as CEO. Foshee will be non-executive chairman.

El Paso said the deal would give managers the opportunity to focus "on distinct business strategies" appropriate for each of the resulting companies, more flexibility to grow each of the businesses and improved capital markets access.

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