Tallgrass Energy Partners (TEP) is acquiring an additional 31.3% interest in Tallgrass Pony Express Pipeline for cash consideration of $475 million and 6.518 million TEP common units issued to Tallgrass Development.

Based on TEP’s December 31 closing price of $41.21, the total consideration of approximately $743.6 million represents a multiple of approximately 9.0x incremental cash flow to TEP as a result of the acquisition. The acquisition increases TEP’s membership interest in Pony Express to 98%.

According to a related 8-K filing, the partnership exercised the $400 million increase under its existing credit agreement with Barclays, as administrative agent, and a syndicate of lenders, which increased the total revolving credit commitments under a credit agreement from $1.1 billion to $1.5 billion. On January 4, 2016, the partnership borrowed $484 million to fund the cash consideration for the subject interest.

Leawood, KS-based TEP is a publicly traded, growth-oriented limited partnership formed to own, operate, acquire and develop midstream energy assets in North America. TEP currently provides natural gas transportation and storage services for customers in the Rocky Mountain and Midwest regions of the U.S. through its Tallgrass Interstate Gas Transmission and Trailblazer Pipeline systems.