El Paso Pipeline Partners to borrow $570 million from revolver

By Ashley Montgomery

Kansas City, Kan., May 21 - El Paso Pipeline Partners, LP plans to draw $570 million from its revolving credit facility to fund its obligations under a contribution agreement with 12 related companies, according to an 8-K filing with the Securities and Exchange Commission.

The agreement calls for El Paso to exchange $635 million for a 100% interest in Cheyenne Plains Investment Co., LLC and a 14% interest in Colorado Interstate Gas Co., LLC.

The $635 million will come from the draw on the revolver, a $1 million contribution from El Paso Pipeline GP Co., LLC and $64 million of new common units representing limited partner interests in El Paso Pipeline Partners.

El Paso Pipeline Partners was formed by El Paso Corp., a provider of natural gas and related energy products, to own and operate natural gas transportation pipelines and storage assets. Both companies are based in Houston.

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