Regency Energy Partners LP , Alinda Capital Partners LLC (“Alinda”) and an affiliate of GE Energy Financial Services announced today the completed formation and funding of a joint venture to finance and construct Regency’s Haynesville Expansion Project, a North Louisiana pipeline that will transport gas from the Haynesville Shale, one of the fastest growing U.S. natural gas fields. Regency has already secured commitments from shippers for 84% of the pipeline’s capacity.“We are pleased to close our joint venture and to continue to build the necessary infrastructure to bring Haynesville gas to markets,” said Byron Kelley, chairman, president and chief executive officer of Regency. “By partnering with GE Energy Financial Services and Alinda, Regency has improved our balance sheet, and we currently intend to maintain our existing quarterly 44.5 cent per unit distribution during the construction of the project.”
The initial 1.1 Bcf/d Haynesville Expansion Project will more than double Regency’s existing pipeline system in North Louisiana and is expected to be in-service by the end of 2009. Regency will continue to develop and operate the system through this new joint venture.
Regency contributed to the joint venture its Regency Intrastate Gas System (“RIGS”) in North Louisiana, valued at $400 million, in exchange for a 38% general partnership interest in the joint venture. An affiliate of GE Energy Financial Services and Alinda Capital Partners LLC, an independent private investment firm specializing in infrastructure investments, contributed $126.5 million and $526.5 million in cash, respectively, to the joint venture in return for a 12% and a 50% general partnership interest, respectively. Regency also received a cash payment that was equal to the total Haynesville Expansion Project capital expenditures paid through the closing date, subject to certain adjustments.
About Regency Energy Partners
Regency Energy Partners LP (Nasdaq: RGNC - News) is a growth-oriented, midstream energy partnership engaged in the gathering, contract compression, processing, marketing and transporting of natural gas and natural gas liquids. Regency's general partner is majority-owned by an affiliate of GE Energy Financial Services, a unit of GE (NYSE: GE - News). For more information, visit the Regency Energy Partners LP Web site at www.regencyenergy.com.
About Alinda Capital Partners LLC
Alinda Capital Partners LLC is one of the world’s largest investors in infrastructure through the Alinda Infrastructure Funds, which are unlisted institutional funds with over $5 billion in capital commitments. The Funds’ investors are predominantly pension funds for public sector and private sector workers and include some of the largest institutional investors in the world. Alinda has ownership interests in airports, roads, rail, gas distribution and transmission, water and wastewater, and other infrastructure assets that provide essential services to communities, governments and businesses. Alinda’s portfolio companies serve over 160 million customers annually. For more information, visit www.alinda.com.
About GE Energy Financial Services
GE Energy Financial Services’ experts invest globally with a long-term view, backed by the best of GE’s technical know-how and financial strength, across the capital spectrum in one of the world’s most capital-intensive industries, energy, to help their customers and GE grow. With $22 billion in assets, GE Energy Financial Services is based in Stamford, Connecticut.
Contact:
Investor Relations:
Regency Energy Partners
Shannon Ming, 214-840-5467
Vice President, Investor Relations & Communications
shannon.ming@regencygas.com
or
Media Relations:
HCK2 Partners
Emily Bruce, 972-716-0500 x21
emily.bruce@hck2.com
or
Alinda Capital Partners LLC
Chris Beale, 212-838-6403
chris.beale@alinda.com
or
GE Energy Financial Services
Andy Katell, 203-961-5773
source: yahoo
The initial 1.1 Bcf/d Haynesville Expansion Project will more than double Regency’s existing pipeline system in North Louisiana and is expected to be in-service by the end of 2009. Regency will continue to develop and operate the system through this new joint venture.
Regency contributed to the joint venture its Regency Intrastate Gas System (“RIGS”) in North Louisiana, valued at $400 million, in exchange for a 38% general partnership interest in the joint venture. An affiliate of GE Energy Financial Services and Alinda Capital Partners LLC, an independent private investment firm specializing in infrastructure investments, contributed $126.5 million and $526.5 million in cash, respectively, to the joint venture in return for a 12% and a 50% general partnership interest, respectively. Regency also received a cash payment that was equal to the total Haynesville Expansion Project capital expenditures paid through the closing date, subject to certain adjustments.
About Regency Energy Partners
Regency Energy Partners LP (Nasdaq: RGNC - News) is a growth-oriented, midstream energy partnership engaged in the gathering, contract compression, processing, marketing and transporting of natural gas and natural gas liquids. Regency's general partner is majority-owned by an affiliate of GE Energy Financial Services, a unit of GE (NYSE: GE - News). For more information, visit the Regency Energy Partners LP Web site at www.regencyenergy.com.
About Alinda Capital Partners LLC
Alinda Capital Partners LLC is one of the world’s largest investors in infrastructure through the Alinda Infrastructure Funds, which are unlisted institutional funds with over $5 billion in capital commitments. The Funds’ investors are predominantly pension funds for public sector and private sector workers and include some of the largest institutional investors in the world. Alinda has ownership interests in airports, roads, rail, gas distribution and transmission, water and wastewater, and other infrastructure assets that provide essential services to communities, governments and businesses. Alinda’s portfolio companies serve over 160 million customers annually. For more information, visit www.alinda.com.
About GE Energy Financial Services
GE Energy Financial Services’ experts invest globally with a long-term view, backed by the best of GE’s technical know-how and financial strength, across the capital spectrum in one of the world’s most capital-intensive industries, energy, to help their customers and GE grow. With $22 billion in assets, GE Energy Financial Services is based in Stamford, Connecticut.
Contact:
Investor Relations:
Regency Energy Partners
Shannon Ming, 214-840-5467
Vice President, Investor Relations & Communications
shannon.ming@regencygas.com
or
Media Relations:
HCK2 Partners
Emily Bruce, 972-716-0500 x21
emily.bruce@hck2.com
or
Alinda Capital Partners LLC
Chris Beale, 212-838-6403
chris.beale@alinda.com
or
GE Energy Financial Services
Andy Katell, 203-961-5773
source: yahoo
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