Fitch: Transwestern Pipe positive

Fitch Ratings said it has placed Transwestern Pipeline Co.'s B+ indicative senior unsecured debt, BB rated $150 million four-year revolving credit facility and its $400 million five-year term loan (collectively, the bank facilities) on Rating Watch positive following Friday's announcement by Enron Corp. that it has reached agreement with NuCoastal LLC for the sale of Transwestern's parent holding company, CrossCountry Energy LLC.

The transaction price is about $2.2 billion, including the assumption of $430 million of Transwestern debt. NuCoastal is owned by Kelso & Co., ArcLight Capital Partners LLC, Citigroup, and Oscar Wyatt Jr.

Prior to Friday's rating action, the outlook was positive for Transwestern's debt.

Fitch said the Rating Watch positive status reflects an anticipated speedier resolution to Transwestern's separation from Enron ownership through the sales process. However, given the bidding procedures, the ultimate ownership structure and resulting operating and financial plans for Transwestern remain uncertain.

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