NGPL PipeCo LLC Announces Commencement of Syndication of New Bank Credit Facility

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Apr 18, 2012, 08:00 ET

HOUSTON, April 18, 2012 /PRNewswire/ -- NGPL PipeCo LLC (the "Company") announced today that it has commenced a syndication process for a new bank credit facility (the "Credit Facility"), the net proceeds of which would be used to fund a portion of the purchase of its outstanding 6.514% Senior Notes due 2012 (the "2012 Notes") that are tendered to the Company in the Company's previously announced tender offer (the "Tender Offer") and consent solicitation (the "Consent Solicitation").

The Credit Facility is expected to be secured by, among other things, a pledge (the "Pledge") of the Company's stock in Natural Gas Pipeline Company of America LLC (the "Stock"), the Company's wholly-owned subsidiary. Upon the closing of the Credit Facility and the execution of documentation evidencing the Pledge, the Company expects to grant holders of the Company's 7.119% Senior Notes due 2017 (the "2017 Notes") and 7.768% Senior Notes due 2037 (the "2037 Notes") an equal and ratable lien on the Stock. If the Consent Solicitation is successful and the Company executes a supplemental indenture to remove substantially all of the negative covenants from the indenture governing the 2012 Notes, any 2012 Notes that remain outstanding after the consummation of the Tender Offer are not expected to be granted a lien on the Stock.

Upon the closing of the Tender Offer and the Credit Facility, shareholders of the Company's indirect parent company, Myria Acquisition LLC ("Myria Acquisition"), expect to make capital contributions to Myria Acquisition sufficient to repay in full the existing Myria Acquisition credit facility and related interest-rate swap obligations. Such capital contributions are expressly contingent upon the closing of the Credit Facility and the consummation of the Tender Offer. No assurance can be made as to whether any of the Credit Facility, any concurrent debt offering, the Tender Offer, the Consent Solicitation, the capital contributions or the grant of liens to holders of the 2017 Notes and the 2037 Notes will occur, on the terms described above or otherwise.

This press release is for informational purposes only and is neither an offer to purchase nor a solicitation of consents. The offer to purchase the 2012 Notes is only being made pursuant to the tender offer and consent solicitation documents that the Company has previously distributed to holders of the 2012 Notes.

About the Company

The Company is engaged in interstate natural gas transportation and storage through its wholly-owned subsidiary, Natural Gas Pipeline Company of America LLC ("NGPL"). The Company conducts no operations and has no material assets other than 100% of the equity interest in NGPL and its other subsidiaries.

NGPL is one of the largest U.S. natural gas pipeline and storage systems with approximately 9,200 miles of gas transmission pipelines and as well as storage fields, field system lines and related facilities. NGPL links the Texas and Oklahoma gas producing regions, onshore and offshore Louisiana supply regions, and supply received from the Rocky Mountains with gas-consuming regions in the Midwest, particularly Chicago and northern Indiana.

Some of the statements in this release may constitute forward-looking statements. Forward-looking statements are based on our expectations and beliefs concerning future events affecting us, and are subject to uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Because of these uncertainties, you should not put undue reliance on any forward-looking statements. We make no promise to update any forward-looking statement, whether as a result of changes in underlying factors, new information, future events or otherwise.

All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.

SOURCE NGPL PipeCo LLC