UPDATE 1-Atlas Pipeline sells gas transmission sys for $300 mln
* To sell gas transmission system to Spectra Energy Partners * Atlas: looking for other transactions to generate cash
* Spectra: deal to add to cash available for distribution * Atlas shares up 10 pct
April 8 (Reuters) - Gas pipeline operator Atlas Pipeline Partners L.P. APL.N said it agreed to sell its NOARK gas transmission system to Spectra Energy Partners L.P. (SEP.N: Cotización) for $300 million in cash.
Atlas Pipeline said with this sale, and the previously announced Marcellus Shale joint venture with Williams Cos Inc (WMB.N: Cotización), it will be paying down about $400 million of debt.
"We continue to work on other transactions which should generate additional cash and further de-lever our company," Atlas Pipeline said.
Under the latest deal, the primary asset to be acquired by Spectra is Ozark Gas Transmission L.L.C., extending from southeast Oklahoma through Arkansas into southeast Missouri.
Also included in the deal is Ozark Gas Gathering L.L.C., a fee-based natural gas gathering system located in eastern Oklahoma and western Arkansas, Spectra said.
For the year ended Dec. 31, 2008, NOARK generated earnings before interest, taxes, depreciation and amortization of about $46 million, Spectra added.
Spectra expects the acquisition to immediately add to cash available for distribution. The company said it had recommended that the quarterly cash distribution per limited partnership unit be increased by 1 cent beginning the first full quarter following closing of the transaction. Continuación...