By OGJ editors
HOUSTON, May 21 -- NuCoastal LLC, a consortium led by Oscar Wyatt of Houston, agreed to buy CrossCountry Energy, Houston, from the bankrupt Enron Corp., Houston, for $2.2 billion, including the assumption of $430 million in debt.
Enron formed CrossCountry Energy in June 2003 as a holding company for its interests in three natural gas pipeline systems: Transwestern Pipeline Co., Citrus Corp., and Northern Plains Natural Gas Co. Together, the three companies have 9,900 miles of pipeline systems with 8.5 bcfd of capacity.
The deal remains subject to approval by the US Bankruptcy Court in New York that oversees Enron's Chapter 11 case. Other potential buyers will have an opportunity to submit higher bids. Pending necessary court and regulators' approvals, the deal is expected to close by the fourth quarter.
In addition to Wyatt, NuCoastal owners include affiliates of Citigroup Inc. of New York, and private equity investment firms Kelso & Co. of New York and ArcLight Capital Partners LLC of Boston. Wyatt founded Coastal Corp., which El Paso Corp. bought in 2001.
One of the pipeline companies involved in the NuCoastal-CrossCountry deal holds interest in a master limited partnership.
Northern Plans Natural Gas is one of the general partners of Northern Border Partners LP, Omaha, Neb. Northern Border Partners owns interest in Northern Border Pipeline Co., Midwestern Gas Transmission Co., Viking Gas Transmission Co., and Guardian Pipeline LLC.
If the transaction is finalized, NuCoastal would own 1.65% of the aggregate 2% general partnership interest in Northern Border Partners and would be entitled to an 82.5% vote on the Partnership Policy Committee of Northern Border Partners. A TransCanada PipeLines Ltd. affiliate owns the remaining general partner interest and is entitled to an aggregate 17.5% vote on the Partnership Policy Committee.
