Cleary Gottlieb Counsel in $70 Billion Consolidation of Kinder Morgan
August 11, 2014
Cleary Gottlieb is representing Barclays Capital Inc. as financial advisor to Kinder Morgan, Inc. in its acquisition of all of the outstanding equity securities of Kinder Morgan Energy Partners, L.P., Kinder Morgan Management, LLC and El Paso Pipeline Partners L.P. for approximately $70 billion in cash, shares and assumed debt, making Kinder Morgan the largest energy infrastructure firm in North America. Kinder Morgan Energy Partners unitholders will each receive 2.1931 Kinder Morgan shares and $10.77 in cash; Kinder Morgan Management shareholders will each receive 2.4849 Kinder Morgan shares; and El Paso Pipeline Partners unitholders will each receive 0.9451 Kinder Morgan shares and $4.65 in cash. Unitholders of Kinder Morgan Energy Partners and El Paso Pipeline Partners will be able to elect consideration of cash or Kinder Morgan stock, subject to proration. The transaction will simplify Kinder Morgan’s organizational structure by consolidating four separately traded equity securities into one. The transaction is expected to close by the end of 2014, subject to unitholder, shareholder and regulatory approvals.