By Tess Stynes
Kinder Morgan Inc. said it is offering $6 billion of senior
notes to help fund the energy company's $44 billion deal to
consolidate four related pipeline companies.
The bond offer comes a day before the consolidation transaction
is expected to close.
According to a filing with the U.S. Securities and Exchange
Commission, Kinder Morgan is offering five series of debt that come
due from 2017 to 2045. The notes carry interest rates ranging from
2% to 5.55%.
Kinder Morgan initially unveiled its debt offer plans Monday but
didn't provide financial terms. Dow Jones Newswires had reported
the size was expected to be about $5 billion.
Companies have been diving into the U.S. bond market this year
as interest rates remain relatively low.
Last week, Chinese Internet company Alibaba Group Holding Ltd.
launched a debut $8 billion bond sale, one of the largest
corporate-bond sales of the year. And in November, Walgreen Co.
raised $8 billion through a debt sale to help pay for its purchase
of international pharmacy chain Alliance Boots GmbH.
Kinder Morgan unveiled its consolidation plan on Aug. 10. Kinder
Morgan Inc., which manages the pipeline businesses and is the
general partner of the other three entities, would acquire Kinder
Morgan Energy Partners, El Paso Pipeline Partners and Kinder Morgan
Management LLC, which is for institutions and is eligible for a
tax-free exchange of shares.
Mike Cherney contributed to this article.
Write to Tess Stynes at tess.stynes@wsj.com
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