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Spectra Energy Partners to Acquire 38.76% Interest in Maritimes & Northeast Pipeline, L.L.C.

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Spectra Energy Partners, LP (NYSE: SEP) today announced an agreement to acquire a 38.76 percent interest in Maritimes & Northeast Pipeline, L.L.C. (M&N US) from Spectra Energy Corp (NYSE: SE) for approximately $319 million in cash and approximately $56 million in newly issued partnership units.  M&N US has debt outstanding of $439 million, 38.76 percent of which is $170 million. 

M&N US owns a FERC-regulated, 338-mile mainline interstate natural gas transportation system in the U.S., which extends from the border of Canada near Baileyville, Maine, to northeastern Massachusetts and has market delivery capability of approximately 0.8 billion cubic feet per day (Bcf/day) of natural gas.  The pipeline's location and key interconnects with Spectra Energy's transmission system link regional natural gas supplies to the Northeast U.S. and Atlantic Canadian markets.  M&N US's stable cash flows are backed by an average contract life of approximately 19 years and over 90 percent fee-based revenues. 

"We are pleased to have a stake in the Maritimes & Northeast Pipeline which further enhances Spectra Energy Partners' profile of steady,

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Posted-In: News Guidance Financing Management Global


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