WASHINGTON (dpa-AFX) - El Paso Pipeline Partners, L.P. said it has agreed to acquire the remaining 14% interest in Colorado Interstate Gas Co., L.L.C., or CIG, and all of Cheyenne Plains Investment Co., L.L.C., which owns Cheyenne Plains Gas Pipeline Co., L.L.C. from El Paso Corp. (EP) for $635 million and the assumption of around $242 million of proportional debt.
El Paso Pipeline stated that the transaction, which is expected to close contemporaneously with Kinder Morgan, Inc.'s acquisition of El Paso, will be immediately accretive to distributable cash flow and is being funded with approximately $571 million of cash from borrowings under El Paso Pipeline's revolving credit facility and $64 million of equity from the issuance of common units to El Paso. El Paso will make an approximate $1 million general partner capital contribution to maintain its 2 percent general partner interest in El Paso Pipeline.
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