Kinder Morgan Energy Partners L.P. (KMP: Quote) has reached a purchase and sale agreement with Tallgrass Energy Partners LP to divest Kinder Morgan Interstate Gas Transmission, Trailblazer Pipeline Company, the Casper-Douglas natural gas processing and West Frenchie Draw treating facilities in Wyoming and the company's 50 percent stake in the Rockies Express Pipeline. KMP would receive nearly $1.8 billion in cash from the transaction, which is equivalent to $3.3 billion, including the proportionate amount of REX debt.
Tallgrass is owned by The Energy & Minerals Group, Kelso & Co. and the management team of Tallgrass, including CEO David Dehaemers, Jr. Barclays and Citi acted as financial advisors to KMP on this transaction.
During March 2012, Kinder Morgan Inc. (KMI: Quote) said it had signed a deal with the FTC to divest certain KMP assets in the Rockies in order to obtain regulatory approval of its acquisition of El Paso Corporation, which closed in May.
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by RTT Staff Writer
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