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El Paso underwriters exercised option to buy units

HOUSTON (AP) -- El Paso Pipeline Partners LP said Tuesday that underwriters of its recently completed public offering of 7.1 common units have exercised in full their option to buy an additional 1.1 million units.

Wells Fargo Securities, Barclays, Citigroup, Credit Suisse, J.P. Morgan and UBS Investment Bank were joint underwriters. The price for the additional common units was $34.34 per unit — the same price at which the 7.1 million common units were sold.

Both offerings closed Friday with total net proceeds of about $277.5 million, which El Paso said it plans to use to repay debt and for general partnership purposes.

The company is a limited partnership created by the former El Paso Corp., now part of Kinder Morgan Inc., to own and operate natural gas pipelines and storage facilities.

El Paso Pipeline Partners shares rose 21 cents to $36.33 in afternoon trading.