Florida Gas Transmission to raise US$ 844 million to fund expansion projects

Southern Union Company has announced that Florida Gas Transmission Company, LLC (FGT), an affiliate of Southern Union Company and El Paso Corporation, has issued US$ 500 million of 5.45% senior notes due July 15, 2020, at an offering price of US$ 99.826 (per $100.00 principal) to yield 5.47% and US$ 350 million of 4.00% senior notes due July 15, 2015, at an offering price of US$ 99.982 (per US$ 100.00 principal) to yield 4.00%.

FGT will use the net proceeds of approximately US$ 843.9 million from the sale to partially fund its US$ 2.4 billion Phase VIII expansion project and for general corporate purposes, which may include repayment of any of FGT’s outstanding debt. FGT operates a 5,000-mile natural gas pipeline system extending from south Texas to south Florida with current mainline capacity of approximately 2.3 billion ft³/d.

The Phase VIII expansion project includes the construction of approximately 500 miles of large diameter pipeline and the installation of over 200,000 horsepower of additional compression that will provide up to an additional 820 million ft³/d of natural gas transportation capacity.

Read the article online at: https://www.worldpipelines.com/business-news/20072010/florida_gas_transmission_raises_us$_843_million_to_fund_expansion/