Boardwalk Announces Agreement for $500 Million Equity Investment by Loews Corporation
HOUSTON--(BUSINESS WIRE)--Oct. 31, 2008--Boardwalk Pipeline Partners, LP (NYSE:BWP) today announced it has agreed to sell 21,184,609 newly issued common units to a subsidiary of Loews Corporation in a private placement at a price of $23.13 per common unit, the closing price of the common units on the New York Stock Exchange on October 30, 2008, for aggregate proceeds of $490 million. In addition, Loews will contribute $10 million on behalf of Boardwalk Pipeline's general partner to maintain its 2% general partner interest.
The investment has been approved by the independent Conflicts Committee of the general partner of Boardwalk Pipeline. Closing of the transaction, which is subject to customary conditions, is expected to take place on November 4, 2008. As previously announced, Boardwalk Pipeline plans to use the net proceeds from the issuance to fund a portion of the cost of its expansion projects.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The common units that are being sold in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be sold in the United States absent registration or an applicable exemption from registration requirements.
Boardwalk Pipeline Partners, LP is a master limited partnership engaged through its subsidiaries, Gulf South Pipeline Company, LP and Texas Gas Transmission, LLC, in the interstate transportation and storage of natural gas. Boardwalk's two interstate natural gas pipeline systems have approximately 13,660 miles of pipeline and underground storage fields with aggregate working gas capacity of approximately 155 Bcf.
This press release contains forward-looking statements relating to expectations, plans or prospects for Boardwalk Pipeline Partners, LP and its subsidiaries. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include market conditions and other factors beyond the company's control and the risk factors and other cautionary statements discussed in Boardwalk's filings with the U.S. Securities and Exchange Commission.
CONTACT:
Boardwalk Pipeline Partners, LP
Jamie Buskill, 713-479-8082
Sr. Vice President and Chief Financial Officer
Petra Tabor, 866-913-2122
Investor Relations
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