Ruby Pipeline, L.L.C. (Ruby) announced today that it has completed an
offering of $1.075 billion in aggregate principal amount of senior
unsecured notes, comprised of $250 million principal amount of 4.50%
Notes due 2017 and $825 million principal amount of 6.00% Notes due
2022. Ruby used the proceeds of the offering, together with cash
released from a debt service reserve account and borrowings under Ruby's
new $350 million unsecured term loan credit facility to fully repay its
previously existing senior secured credit facility.
The notes have not been registered under the Securities Act of 1933, as
amended (the Securities Act), or any state securities laws; and unless
so registered, the notes may not be offered or sold in the United States
except pursuant to an exemption from, or in a transaction not subject
to, the registration requirements of the Securities Act and applicable
state securities laws. The notes were offered only to qualified
institutional buyers pursuant to Rule 144A under the Securities Act and
to non-U.S. persons outside the United States in accordance with
Regulation S under the Securities Act. This press release shall not
constitute an offer to sell or a solicitation of any offer to buy such
securities.
Ruby is a Delaware limited liability company, formed in 2007, whose sole
asset is the Ruby pipeline, a recently completed 683-mile FERC-regulated
natural gas transmission system that extends westward from the Opal Hub
in Western Wyoming to the Malin Hub in Oregon, near the California
border. Ruby is indirectly owned 50 percent by El Paso Corporation and
50 percent by funds managed by Global Infrastructure Management, L.L.C.
(GIP). The notes are not guaranteed by El Paso Corporation, GIP or any
other person.
El Paso provides natural gas and related energy products in a safe,
efficient, and dependable manner. It owns or has interests in North
America’s largest interstate natural gas pipeline systems, one of North
America’s largest independent exploration & production companies and an
emerging midstream business. El Paso owns a 42 percent limited partner
interest, and the 2 percent general partner interest, in El Paso
Pipeline Partners, L.P. On October 16, 2011, El Paso and Kinder Morgan,
Inc. (Kinder Morgan) announced an agreement whereby Kinder Morgan would
acquire all of the outstanding shares of El Paso. The transaction is
expected to close in the second quarter of 2012 and is subject to the
approval of both El Paso’s and Kinder Morgan’s shareholders and to
customary regulatory approvals. Following the closing of the
transaction, El Paso will be a subsidiary of Kinder Morgan. For more
information, visit http://www.elpaso.com.
Global Infrastructure Partners is an independent infrastructure fund
that invests worldwide in infrastructure assets and business in both
OECD and select emerging market countries. GIP targets investments in
single assets, and portfolios of assets and companies in power and
utilities, natural resources infrastructure, air transport
infrastructure, seaports, freight railroad, water distribution and
treatment and waste management. GIP has offices in New York and London,
with an affiliate in Sydney and portfolio company operations
headquarters in Stamford, Connecticut. For more information, visit www.global-infra.com.
