OVERLAND PARK, Kan.--(BUSINESS WIRE)--Rockies Express Pipeline LLC (the "Company") announced today that it intends to offer $525 million in aggregate principal amount of senior unsecured notes due 2019 (the "Notes") in a private placement to eligible purchasers under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the “Securities Act”).
The Company intends to use substantially all of the net proceeds from the issuance of the Notes to redeem all of its outstanding 6.25% Senior Notes due 2013. Any remaining net proceeds will be used for working capital and general corporate purposes.
The Notes have not been registered under the Securities Act, and may not be offered or sold in the United States absent registration or an applicable exemption from registration. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the Notes.
About Rockies Express Pipeline
Rockies Express Pipeline LLC is a Delaware limited liability company engaged in the ownership and operation of the Rockies Express Pipeline, a modern 1,698-mile natural gas pipeline that extends from Opal, Wyoming and Meeker, Colorado to Clarington, Ohio and is one of the largest natural gas pipelines ever constructed in North America. The system consists of 36-inch and 42-inch diameter pipe with a long-haul design capacity of up to 1.8 billion cubic feet of natural gas per day (Bcf/d), eight receipt-only points, six bi-directional points and 35 delivery interconnections that provide access to markets not directly served by the pipeline, and 14 mainline compressor stations and four booster stations with a total of approximately 427,000 horsepower of installed capacity. In addition, the Company has 625,000 Mcf/d of capacity on the Overthrust Pipeline available to it pursuant to a long-term lease.
Rockies Express Pipeline LLC is a joint venture among a subsidiary of Tallgrass Energy Partners, LP, a subsidiary of Sempra Energy, and a subsidiary of Phillips 66. Tallgrass Energy Partners, LP indirectly owns a 50% membership interest and Sempra Energy and Phillips 66 each indirectly owns a 25% membership interest. A wholly-owned subsidiary of Tallgrass Energy Partners, LP operates the pipeline.
Cautionary Note Concerning Forward-Looking Statements
Some of the information contained in this press release constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The fact that the Company announced the proposed offering does not mean that such offering will price or close. Although the Company's management believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from expectations.
Factors that could cause actual results to differ materially from expectations include, but are not limited to capital markets conditions, interest rates and inflation. The Company therefore cautions you against relying on these forward-looking statements. All forward-looking statements attributable to the Company or persons acting on the Company's behalf are expressly qualified in their entirety by the foregoing cautionary statements. New risks and uncertainties may arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. All such statements speak only as of the date made, and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.