El Paso Corp : Ruby Pipeline, L.L.C. Announces Completion of $1.075 Billion Private Placement of Senior Notes—Retires Existing $1.510 Billion Secured Project Financing
02/15/2012| 04:39pm US/Eastern
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HOUSTON, TEXAS, February 15, 2012- Ruby Pipeline, L.L.C.
(Ruby) announced today that it has completed an offering of
$1.075 billion in aggregate principal amount of senior
unsecured notes, comprised of $250 million principal amount
of 4.50% Notes due 2017 and $825 million principal amount of
6.00% Notes due 2022. Ruby used the proceeds of the offering,
together with cash released from a debt service reserve
account and borrowings under Ruby's new $350 million
unsecured term loan credit facility to fully repay its
previously existing senior secured credit facility.
The notes have not been registered under the Securities Act
of 1933, as amended (the Securities Act), or any state
securities laws; and unless so registered, the notes may not
be offered or sold in the United States except pursuant to an
exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and
applicable state securities laws. The notes were offered only
to qualified institutional buyers pursuant to Rule 144A under
the Securities Act and to non-U.S. persons outside the United
States in accordance with Regulation S under the Securities
Act. This press release shall not constitute an offer to sell
or a solicitation of any offer to buy such securities.
Ruby is a Delaware limited liability company, formed in 2007,
whose sole asset is the Ruby pipeline, a recently completed
683-mile FERC-regulated natural gas transmission system that
extends westward from the Opal Hub in Western Wyoming to the
Malin Hub in Oregon, near the California border. Ruby is
indirectly owned 50 percent by El Paso Corporation and 50
percent by funds managed by Global Infrastructure Management,
L.L.C. (GIP). The notes are not guaranteed by El Paso
Corporation, GIP or any other person.
El Paso provides natural gas and related energy products in a
safe, efficient, and dependable manner. It owns or has
interests in North America's largest interstate natural gas
pipeline systems, one of North America's largest independent
exploration & production companies and an emerging midstream
business. El Paso owns a 42 percent limited partner interest,
and the 2 percent general partner interest, in El Paso
Pipeline Partners, L.P. On October 16, 2011, El Paso and
Kinder Morgan, Inc. (Kinder Morgan) announced an agreement
whereby Kinder Morgan would acquire all of the outstanding
shares of El Paso. The transaction is expected to close in
the second quarter of 2012 and is subject to the approval of
both El Paso's and Kinder Morgan's shareholders and to
customary regulatory approvals. Following the closing of the
transaction, El Paso will be a subsidiary of Kinder Morgan.
For more information, visit http://www.elpaso.com.
Global Infrastructure Partners is an independent
infrastructure fund that invests worldwide in infrastructure
assets and business in both OECD and select emerging market
countries. GIP targets investments in single assets, and
portfolios of assets and companies in power and utilities,
natural resources infrastructure, air transport
infrastructure, seaports, freight railroad, water
distribution and treatment and waste management. GIP has
offices in New York and London, with an affiliate in Sydney
and portfolio company operations headquarters in Stamford,
Connecticut. For more information, visit
www.global-infra.com.
Contacts
El Paso Corporation
Investor and Media Relations
Bruce Connery
(713) 420-5855
Media Relations
Bill Baerg
(713) 420-2906
Global Infrastructure Partners
Media
Jack Cowell
(212) 315-8133
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