El Paso Pipeline Partners, L.P. has completed the previously announced acquisition of an additional 30-percent interest in Colorado Interstate Gas Company (CIG) and an additional 15-percent interest in Southern Natural Gas Company (SNG) from El Paso Corporation for $736 million. El Paso Pipeline Partners now owns a 40-percent interest in CIG and a 25-percent interest in SNG.

The transaction was financed with $250 million of debt, and the issuance of approximately 27.8 million common units. Approximately 26.9 million units were placed with El Paso Corporation, and approximately 0.9 million units were placed with two private investors in a transaction under the same previously disclosed terms. The general partner also purchased 0.6 million general partner units for $10 million, maintaining its 2-percent interest.

As a result of the transaction, management intends to recommend to the Board of Directors of the general partner an increase in the quarterly cash distribution to $0.32 per unit, beginning with the distribution to be declared and paid in the first quarter 2009.

Tags: Colorado Interstate Gas Company, El Paso Corporation