Tallgrass Development to acquire additional Rockies Express Pipeline interests

Tallgrass Development LP’s wholly owned subsidiary, Rockies Express Holdings LLC, has signed a purchase agreement with a unit of Sempra US Gas and Power to acquire Sempra's 25% membership interest in Rockies Express Pipeline LLC (REX) for cash consideration of $440 million, subject to adjustment under the purchase agreement.

The transaction has been approved by the applicable boards of both Tallgrass and Sempra, and is subject to closing conditions. In addition, the other member of REX, which owns a 25% membership interest, has a right to purchase its proportionate share of Sempra's 25% membership interest being sold to Tallgrass, which could reduce the membership interest acquired by Tallgrass from Sempra to 16-2/3%. Tallgrass expects the transaction to close in the second quarter of 2016.

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