DOW JONES NEWSWIRES
Boardwalk Pipeline Partners LP announced that Loews Corp. (L)
will buy $147 million of units, further boosting its majority stake
in the pipeline partnership.
Loews, which owned nearly 70% of the company, is getting 6.7
million units through the private placement. Boardwalk's general
partner is also investing $3 million to preserve its stake in the
company at 2%.
Meanwhile, Boardwalk announced Tuesday that earlier this month
it borrowed the remaining $100 million under a $200 million loan
facility agreed to last month with Loews.
Boardwalk, which has 14,000 miles of natural-gas pipeline, has
been recording solid growth, but first-quarter earnings fell 41%
amid surging costs.
Boardwalk's units are up 25% this year and were recently up 1.5%
at $22.31 amid a broad market rebound. Many companies have been
using the three-month rally to raise capital thanks to increased
investor demand.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com
