Reuters: Mergers News: UPDATE 1-Chesapeake to sell pipeline assets for more than $4 bln

Reuters: Mergers News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Chesapeake to sell pipeline assets for more than $4 bln Jun 8th 2012, 12:33 Fri Jun 8, 2012 8:33am EDT June 8 (Reuters) - Chesapeake Energy Corp will sell its pipeline and related assets to Global Infrastructure Partners in three separate transactions worth more than $4 billion, as the company scrambles to plug an expected $9 billion to $10 billion funding shortfall. Chesapeake, the second-largest U.S. natural gas producer, is under pressure to sell assets and cut spending to reduce debt after tumbling natural gas prices have pinched profits. The company, which is holding its annual meeting later on Friday, has also come under intense scrutiny for corporate governance issues. Chesapeake said it will sell its limited partner units and general partner interests in Chesapeake Midstream Partners LP to infrastructure fund GIP for $2 billion. The company also entered into an agreement with Chesapeake Midstream Partners for potential sale of certain Mid-Continent gathering and processing assets. It also has a agreement with Global Infrastructure Partners for the sale its interests in wholly owned subsidiary Chesapeake Midstream Development LP. Chesapeake expects to raise more than $2 billion from the latter two transactions. Chesapeake Midstream Partners has more than 3,700 miles of natural gas gathering pipelines, according to the company's website. Chesapeake also held about 1,950 miles of pipelines in the Chesapeake Midstream Development unit as of the end of last year, according to regulatory filings. Chesapeake has said it will sell as much as $11.5 billion in assets this year in order to reduce its funding gap. Last month, the company arranged for a pricey $4 billion loan from its investment bankers to tide it over. The company's shares rose 3.2 percent in before the bell trading. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions