Boardwalk Pipeline Partners, LP (NYSE:BWP) today announced that it has priced a public offering of 10,000,000 common units representing limited partner interests at a price of $25.30 per unit. Boardwalk expects the offering to close on June 16, 2008. Boardwalk will receive net proceeds after offering expenses in connection with this offering of approximately $248.5 million, including the general partner's proportionate capital contribution of $5.2 million. Boardwalk has granted the underwriters a 30-day option to purchase up to an additional 1,500,000 common units.
Boardwalk plans to use the proceeds from this offering to fund a portion of the cost of its expansion projects, either directly, or indirectly by increasing its borrowing capacity available for such projects through repayment of indebtedness under its revolving credit facility.
Citi, Lehman Brothers, Morgan Stanley and UBS Investment Bank are acting as joint book-running managers for the offering. The senior co-manager for the offering is Wachovia Securities and junior co-managers for the offering are Credit Suisse, Morgan Keegan & Company, Inc. and RBC Capital Markets.
A copy of the final prospectus supplement relating to this offering - when available - may be obtained from any of the underwriters, including:
- Citigroup Global Markets Inc., Brooklyn Army Terminal, Attn: Prospectus Delivery Department, 140 58th Street, Brooklyn, NY 11220, toll free: (800) 831-9146;
- Lehman Brothers Inc., c/o Broadridge Integrated Distribution Services, 1155 Long Island Avenue, Edgewood, NY 11717, by email at qiana.smith@broadridge.com, or by fax at (631) 254-7140;
- Morgan Stanley & Co. Incorporated, Attn: Prospectus Department, 180 Varick Street, 2nd floor, New York, NY 10014, by email at prospectus@morganstanley.com;
- UBS Securities LLC, Attn: Prospectus Department, 299 Park Avenue, New York, NY 10171, toll free: (888) 827-7275; or from any of the other underwriters.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities 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 jurisdiction. The offer is being made only through the prospectus supplement and accompanying base prospectus, which is part of a registration statement that became effective on March 5, 2007.
Boardwalk Pipeline Partners, LP is a master limited partnership engaged through its subsidiaries, Gulf South Pipeline Company, LP and Texas Gas Transmission, LLC, in the interstate transportation and storage of natural gas. Boardwalk's two interstate natural gas pipeline systems have approximately 13,660 miles of pipeline and underground storage fields with aggregate working gas capacity of approximately 155 Bcf.
This press release contains forward-looking statements relating to expectations, plans or prospects for Boardwalk Pipeline Partners, LP and its subsidiaries. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include market conditions and other factors beyond the company's control and the risk factors and other cautionary statements discussed in Boardwalk's filings with the U.S. Securities and Exchange Commission.
Boardwalk Pipeline Partners, LP, Houston
Sr. Vice President and Chief Financial Officer
Jamie Buskill, 713-479-8082
or
Investor Relations
Petra Tabor, 866-913-2122
