(Source: Business Wire)
Boardwalk Pipeline Partners, LP (NYSE:BWP) today announced it has agreed to sell 6,684,857 newly issued common units to a subsidiary of Loews Corporation in a private placement at a price of $21.99 per common unit, the closing price of the common units on the New York Stock Exchange on June 22, 2009, for aggregate proceeds of $147 million. The general partner of Boardwalk Pipeline will also contribute $3 million to maintain its 2% general partner interest for aggregate proceeds of $150 million. The private placement has been approved by the independent Conflicts Committee of the general partner. Closing of the transaction, which is subject to customary conditions, is expected to take place on June 26, 2009.
Boardwalk Pipeline also announced that on June 12, 2009 it borrowed the remaining $100 million available under the $200 million subordinated loan facility with a Loews subsidiary which was announced in May 2009. Boardwalk Pipeline plans to use the proceeds from the private placement and the subordinated loan to fund a portion of the cost of its expansion projects and reduce borrowings under its revolving credit facility.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The common units that are being sold in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be sold in the United States absent registration or an applicable exemption from registration requirements.
Boardwalk Pipeline Partners, LP, is a limited partnership engaged, through its subsidiaries, Gulf Crossing Pipeline Company LLC, Gulf South Pipeline Company, LP, and Texas Gas Transmission, LLC, in the interstate transportation and storage of natural gas. Boardwalk's interstate natural gas pipeline systems have approximately 14,200 miles of pipeline and underground storage fields having aggregate working gas capacity of approximately 160 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.
A service of YellowBrix, Inc.
