mega deals

Apollo in Mega Buyout of El Paso Corp Unit

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February 28, 2012

The deal of the week looks like it is Apollo Global Management’s buyout of El Paso Corp’s oil and gas exploration and production unit for USD 7.15 billion. The LBO will tap USD 4.5 billion of debt, about 63% of the purchase price, reports The Deal Pipeline .

 

Co-investors included Riverstone Holdings LLC, Access Industries Inc, owned by Lee Blavatnik, and other unnamed parties. The deal is designed to expedite the USD 38 billion sale of El Paso to Houston-based energy company Kinder Morgan, according to Legal Week.

 

That transaction, which is scheduled to close in the second quarter of this year, will create the largest natural gas pipeline network in the US and the fourth-largest energy company in North America.

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