Ruby Pipeline Bond Is From El Paso/Global Infrastructure Venture

Ruby Pipeline LLC, a joint venture owned by El Paso Corp. (EP) and Global Infrastructure Partners LLC, is marketing a $1.075 billion senior unsecured bond offering that it expects to price this week.

Ruby Pipeline is a 680-mile-long interstate pipeline that transports natural gas between Opal, Wyoming, and Malin, Oregon, providing a key link between the Rocky Mountains and the western U.S.

Proceeds from the bond and a separate interim loan facility being put in place will help Ruby refinance an existing project finance loan. The pipeline was put into service in July.

The notes have been rated Baa3 by Moody's Investors Service, and BBB-minus by both Standard & Poor's and Fitch Ratings--the last rung on the investment-grade ladder.

Global Infrastructure Partners invested $700 million in the project and intends to have a 50% stake in the project upon satisfaction of various closing conditions.

-By Katy Burne, Dow Jones Newswires; 212-416-3084; katy.burne@dowjones.com

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