Tags: Kinder Morgan | IPO

Kinder Morgan Files for IPO of up to $1.5 Billion

Tuesday, 23 Nov 2010 01:44 PM

Kinder Morgan Inc., the Houston-based pipeline company taken private in a $22 billion leveraged buyout three years ago, has filed to raise as much as $1.5 billion in an initial public offering.

Kinder Morgan said it plans to convert its parent, Kinder Morgan Holdco LLC, to a corporation from a limited liability company. The converted company will be renamed Kinder Morgan, Inc., the company said in a statement on Business Wire.

All of the common stock in the offering will be sold by current investors, including funds advised by or affiliated with Goldman Sachs Group Inc., Highstar Capital LP, Carlyle Group and Riverstone Holdings LLC.

Kinder Morgan will not receive any proceeds from the offering, according to the news release.

Billionaire Chief Executive Officer Richard Kinder owns about a third of the company. Kinder will have the right to nominate five of the company’s 13 board members and will keep his 31% share, according to the filing.

The 2007 buyout of the company was the sixth-largest in history and the biggest involving a pipeline company.

Kinder Morgan operates the second biggest U.S. pipeline network by volume through its control of Kinder Morgan Energy Partners LP, which has a market value of $21.5 billion.

Kinder Morgan operates or owns interests in 37,000 miles of pipelines and about 180 terminals, handling natural gas and other hydrocarbons.

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