October 3, 2008
El Paso Pipeline Acquires Additional Interest in CIG
El Paso Pipeline Partners has acquired an additional 30% interest in Colorado Interstate Gas Company and an additional 15% interest in Southern Natural Gas Company from El Paso Corporation for $736 million.
El Paso Pipeline Partners now owns a 40% interest in the Colorado Interstate Gas Company (CIG) and a 25% interest in the Southern Natural Gas Company (SNG). The transaction was financed with $250 million of debt, and the issuance of approximately 27.8 million common units.
Approximately 26.9 million units were placed with El Paso Corporation, and approximately 0.9 million units were placed with two private investors in a transaction under the same previously disclosed terms. The general partner also purchased 0.6 million general partner units for $10 million, maintaining its 2% interest.