El Paso Corporation and Global Infrastructure Partners (GIP) announced they have closed the project financing for the Ruby Pipeline project. The seven-year, $1.5 billion debt facility is supported by a group of domestic and international banks. Ruby's borrowing rate is LIBOR plus 300 basis points for the first two years; LIBOR plus 325 basis points for the third and fourth years; and LIBOR plus 375 basis points for the fifth, sixth and seventh years, assuming that $700 million of debt is refinanced by the end of the fourth year.
El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest interstate natural gas pipeline system and one of North America's largest independent natural gas producers. El Paso has entered into agreements with GIP, whereby GIP will invest up to $700 million in the Ruby project. Upon satisfaction of various closing conditions, GIP will acquire a 50 percent equity interest in the project.

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Posted by mopeng at May 5, 2010 10:06 PM