KN Energy Remains on Fitch IBCA RatingAlert Negative.NEW YORK--(BUSINESS WIRE)--July 9, 1999-- KN Energy, Inc.'s (KNE KNE Communist Youth of Greece KNE Kassel-Naumburger Eisenbahn AG (Frankfurt, Germany) KNE Kingston Etherx KNE Knowledge Network Explorer ) outstanding `BBB' unsecured notes, debentures, and reset put securities, `BBB' debt shelf registration, `BBB' premium equity participating securities, `BBB-' capital trust securities (issued by KN Capital Trust), and `F2' commercial paper remain on Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals RatingAlert for possible downgrade, following yesterday's announcement that KNE will merge with Kinder Morgan Kinder Morgan Inc. NYSE: KMI is an American energy company. It is also, through a subsidiary, the general partner of and owner of many of the interests in Kinder Morgan Energy Partners, a publicly traded pipeline and terminal limited partnership. Inc. However, the KNE- Kinder Morgan merger has positive credit implications. Fitch IBCA expects to complete its review of management's financial and operating plans in the next several weeks. KNE was placed on RatingAlert Negative on June 22, 1999 following the announced breakup breakup The division of a company into separate parts. The most famous breakup to date was the 1984 division of AT&T (formerly, American Telephone & Telegraph Company). This breakup was intended to increase competition in the communications industry. of KNE's acquisition by Sempra Energy Sempra Energy NYSE: SRE is a San Diego, California-based energy services holding company that was founded in 1998. Sempra owns the Southern California Gas Company, San Diego Gas & Electric, Sempra Commodities, and Sempra Generation. (Sempra). KNE's current ratings take into account the operating and financial benefits that were anticipated with its merger with Sempra. The KNE-Kinder Morgan merger is positive for KNE from both a balance sheet and cash flow perspective. In the combination, KNE would issue 41.5 million shares of common stock in return for all outstanding shares of Kinder Morgan Inc. and the assumption of $140 million of debt. Consolidated debt to capital will be reduced from about 72% to 65%. General partnership cash distributions from Kinder Morgan Energy Partners Kinder Morgan Energy Partners LP NYSE: KMP (KMEP) owns or operates petroleum product, natural gas, and carbon dioxide pipelines, related storage facilities, terminals, power plants and retail natural gas in the United States and Canada. KMEP is a Master Limited Partnership. L.P., estimated at nearly $60 million annually, will be upstreamed to the new merged company and will be available for debt service. There are also favorable operating considerations. |
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