El Paso Pipeline Prices Common Units
El Paso Pipeline Partners has priced a public offering of 10,000,000 common units at $28.80 per common unit. Net proceeds from this offering, including the general partner's proportionate capital contribution, will be used by El Paso Pipeline Partners as partial consideration for the pending acquisition of an additional 16 percent general partner interest in Southern Natural Gas Company from El Paso Corp. The offering is scheduled to close June 23, 2010. El Paso Pipeline Partners also granted the underwriters a 30-day option to purchase up to an aggregate of 1,500,000 additional common units. If the underwriters exercise their option to purchase additional units, the partnership intends to use the net proceeds as consideration for the purchase of an additional general partner interest in Southern Natural Gas Company from El Paso Corporation pursuant to the partnership's option to purchase up to an additional four percent of such interest and/or to reduce outstanding borrowings under its revolving credit facility.
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