HOUSTON--(BUSINESS WIRE)--Dec. 18, 2008--Kinder Morgan Energy Partners, L.P. (NYSE:KMP) today announced that in the last week it has issued debt and equity and unwound interest rate swaps that will bring in over $870 million in net proceeds. "These transactions demonstrate that we can access capital even in difficult market conditions and position us well to fund our expansion projects and further grow the company in 2009," said Chairman and CEO Richard D. Kinder.
KMP is issuing $500 million in 10-year senior notes, with a put in year three, which were priced to yield 9 percent. Joint book running managers were Barclays Capital, Deutsche Bank Securities and RBS Greenwich Capital. This transaction will close on Friday, Dec. 19.
The company also is issuing 3.9 million units of KMP equity in a common unit offering, raising approximately $177 million in net proceeds. This transaction will close on Monday, Dec. 22. The underwriters (UBS Investment Bank, Citi, Merrill Lynch & Co., Morgan Stanley and Wachovia Securities) have a 30-day option to purchase an additional 585,000 common units to cover any over-allotments (representing another $26 million in potential net proceeds).
Additionally KMP has reversed fixed to floating interest rate swaps and received $194 million in cash. The remaining swap portfolio maintains significant value to the company at current interest rates.
Kinder Morgan Energy Partners, L.P. (NYSE:KMP) is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates more than 25,000 miles of pipelines and 170 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle bulk materials like coal and petroleum coke. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of over $20 billion. The general partner of KMP is owned by Knight Inc. (formerly Kinder Morgan, Inc.), a private company.
This news release includes forward-looking statements. Although Kinder Morgan believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are enumerated in the periodic reports of Kinder Morgan Energy Partners, L.P. as filed with the Securities and Exchange Commission.
CONTACT: Kinder Morgan Energy Partners, L.P.,
Houston
Media Relations
Larry Pierce
, 713-369-9407
or
Investor Relations
Mindy Mills
, 713-369-9490
www.kindermorgan.com
Source: Kinder Morgan Energy Partners, L.P.
