KMP Enters Into Agreement to Divest Assets for $1.8B
Kinder Morgan Energy Partners (NYSE: KMP), today announced that it has entered into a purchase and sale agreement with Tallgrass Energy Partners, LP (Tallgrass) to sell Kinder Morgan Interstate Gas Transmission (KMIGT), Trailblazer Pipeline Company, the Casper-Douglas natural gas processing and West Frenchie Draw treating facilities in Wyoming and the company's 50 percent interest in the Rockies Express Pipeline (REX). Tallgrass is owned by The Energy & Minerals Group, Kelso & Company and the management team of Tallgrass, including CEO David G. Dehaemers, Jr. KMP will receive approximately $1.8 billion in cash from the transaction. Including the proportionate amount of REX debt, this amount is equivalent to a value of $3.3 billion. The transaction, which is subject to Federal Trade Commission (FTC) approval, is expected to close in the fourth quarter. Barclays and Citi acted as financial advisors to KMP on this transaction.
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