Spectra Energy Partners Acquires Additional 24.5 Percent Interest in Gulfstream Natural Gas System, from Spectra Energy Corp.

abarrelfull wrote on 08 May 2014 11:44
Tags:

Latest News

• Want a weekly review of refining news?

• This Week in Refining
• RSS Feed

November 30, 2010

HOUSTON – Spectra Energy Partners, LP (NYSE: SEP) today announced it has acquired an additional 24.5 percent interest in Gulfstream Natural Gas System, L.L.C. (Gulfstream) from Spectra Energy Corp (NYSE: SE) for approximately $330 million, consisting of approximately $66 million in newly-issued partnership units, the assumption of approximately $7.4 million in debt owed to a subsidiary of Spectra Energy Corp, and approximately $256.6 million in cash. The acquisition increases Spectra Energy Partners' interest in Gulfstream to 49 percent.

Gulfstream owns a 745-mile interstate natural gas transportation system, which extends from Pascagoula, Miss., and Mobile, Ala., across the Gulf of Mexico into Florida and has market delivery capability of 1.26 billion cubic feet per day (Bcf/day) of natural gas.

Spectra Energy Partners expects the transaction to be accretive to cash available for distribution on a per unit basis.

"Gulfstream's pipeline is a well-positioned asset with a portfolio of long-term, fee-based contracts and a solid position in the Florida market," said Gregory J. Rizzo, president and chief executive officer. "We are pleased to have an additional stake in Gulfstream which further enhances Spectra Energy Partners' profile of steady, fee-based cash flows and aligns nicely with our strategy to deliver value to our investors," continued Rizzo.

To fund its cash consideration of approximately $256.6 million, the Company utilized its existing credit facility. It expects long-term financing for the transaction to be a combination of debt and equity.

The terms of the transaction were unanimously approved by the Board of Directors of the general partner of Spectra Energy Partners' general partner, based on the unanimous approval and recommendation of the Board's conflicts committee, which is comprised entirely of independent directors. The conflicts committee engaged Tudor, Pickering, Holt & Co. Securities, Inc. to act as its financial advisor and Andrews & Kurth LLP to act as its legal advisor.

• Spectra Energy Partners Acquires Additional 24.5 Percent Interest in Gulfstream Natural Gas System, L.L.C. from Spectra Energy Corp

---