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Kinder Morgan Partners (KMP) will acquire 100% of Tennessee Gas Pipeline and a 50% interest in...

Kinder Morgan Partners (KMP) will acquire 100% of Tennessee Gas Pipeline and a 50% interest in El Paso Natural Gas from Kinder Morgan (KMI) for ~$6.22B, including ~$1.8B in assumed debt at Tennessee Gas and ~$560M of proportional debt at El Paso. The moves "will generate substantial, stable cash flow to KMP and its unitholders for many years to come," KMI says.
Comments (1)
  • Uncle Pie
    , contributor
    Comments (2675) | Send Message
     
    these assets command a higher valuation as MLP assets than they do as C-corp assets. That makes these "drop-downs" (as they are called in the MLP literature) a no-brainer.

     

    Long KMP (despite the "high splits" take of the general partner)
    6 Aug 2012, 07:15 PM Reply Like
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