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Revival, Recovery and Private Equity: Kinder Morgan survives the El Paso deal | Deal Insight

Kinder Mirgan needed to sell the Exploration assets of el Paso in a single piece to best realise its dream of completing the $38 bln El Paso deal, which it managed cleanly as Apollo stepped into a deal being compared with Samson takeover by White knight KKR last fall, though there were no other suitors in that case too but the estate thought KKR to be more knosledgable on Oil and Gas than the heirs to the Estate

The Exploration unit of El Paso will belong to Apollo , a rival of KKR after $7.2 bln have changed hands and apparently that

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will take care of all anti trust concerns on the Kinder Morgan _ El Paso deal and both Goldman Sachs and substitute Morgan Stanley get a fair amount of fees for possibly the largest transaction of 2012 for $39 bln

The deal enthusiasm in natural gas has definitely not thinned, so if the valuation could be higher is mostly an academic exercies, esp as even this value requires Apollo and the rest of the syndicate to get bankers to pony up $5.5 bln in debt while Kinder Morgan can reduce that large amount of Financing from their $39 bln deal for El Paso

 

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This entry was posted on February 25, 2012 by in Financial Markets and tagged , , , , , , , , .

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