(Source: Business Wire)
Boardwalk Pipeline Partners, LP (NYSE:BWP) today announced that its wholly owned subsidiary, Boardwalk Pipelines, LP ("Boardwalk") has priced a public offering of $350 million aggregate principal amount of senior notes. The notes will have a 5.75% fixed rate coupon with a price to the public of 99.813% of face value to yield 5.774% to maturity. The notes will mature September 15, 2019. Boardwalk expects the offering to close on August 21, 2009.
Boardwalk intends to use the net proceeds from the offering of approximately $347 million to repay $100 million of borrowings under its Subordinated Loan Agreement with a subsidiary of Loews and to fund a portion of the cost of its expansion projects, either directly, or indirectly by increasing its borrowing capacity available to fund such projects through repayment of indebtedness under its revolving credit facility.
Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Wells Fargo Securities, LLC acted as joint book-running managers for the offering. An electronic copy of the final prospectus supplement and accompanying base prospectus will be available from the Securities and Exchange Commission's website at www.sec.gov. When available, a copy of the final prospectus supplement and accompanying base prospectus relating to this offering may also be obtained from:
Citigroup Global Markets Inc., Brooklyn Army Terminal, Attn: Prospectus Dept., 140 58th Street, 8th floor, Brooklyn, NY 11220 By telephone: (800) 831-9146 or by email at batprospectusdept@citi.com;
J.P. Morgan Securities Inc., 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245. By telephone at (718) 242-8002 or by fax (718) 242-8003;
Wells Fargo Customer Information Center, 1525 West W.T. Harris Blvd., NC0675, Charlotte, NC 28262, Attn: Syndicate Operations. By email: prospectus.specialrequests@wachovia.com or by telephone: (800) 326-5897.
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 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.
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