Global Infrastructure Partners is seeking a $500 million loan for its Ruby Pipeline LLC unit, according to a person with knowledge of the matter.
Special borrowing entities have been created by the private-equity firm for co-borrowers Ruby Western Pipeline Holdings LLC and Ruby Western Pipeline Holdings B LLC, said the person, who asked not to be identified because the information is private.
The seven-year term loan will be used to pay a dividend to Global Infrastructure and fund an account for future debt payments, said the person.
Ruby Pipeline, jointly owned by Kinder Morgan Inc. and Global Infrastructure, is a 680-mile pipeline that delivers gas from the Rocky Mountain region to consumers in California, Nevada and the Pacific Northwest, according to Kinder Morgan’s website.
Barclays Plc and Credit Suisse Group AG are arranging the financing and will host a lender meeting March 8 at 10 a.m. in New York, said the person.
A spokesman for Global Infrastructure Partners declined to comment on the transaction. Richard Wheatley, a spokesman for Kinder Morgan, didn’t immediately respond to an e-mail seeking comment.
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