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Boardwalk unit buys remaining PL Midstream stake

NEW YORK -- Boardwalk Pipeline Partners LP said Monday that a subsidiary has purchased the remaining 65 percent equity interest in PL Midstream LLC from Boardwalk Pipelines Holding Corp. for $269 million.

The holding corporation is a wholly owned subsidiary of Loews Corp. and the parent of Boardwalk Pipeline Partners' general partner.

The Houston natural gas producer said earlier this month that PL Midstream is growing rapidly and has strategically located assets with attractive long-term contracts. It provides storage, pipeline transportation and supply services for producers and consumers of petrochemicals, natural gas liquids and natural gas through two hubs in southern Louisiana.

Boardwalk Pipeline formed a joint venture in August with an affiliate of its general partner to buy PL Midstream for about $625 million. The company announced Oct. 1 that the joint venture completed the acquisition. Boardwalk Pipeline funded the acquisition with proceeds from a $225 million, five-year bank loan and equity contributions from itself and an affiliate of its general partner.

Shares of Boardwalk Pipeline Partners rose 5 cents to end at $26.94. In the past 52 weeks, the stock has ranged between $25.15 and $29.43 per share.