Enbridge Energy Partners Raising Capital (EEP)

Enbridge Energy Partners, L.P. (NYSE: EEP) has priced its pending public secondary offering of 5.2 million Common Units.  The deal priced at $60.12 per unit, raising more than $300 million in the offering.

The partnership said that the net proceeds will be used to repay a portion of its outstanding commercial paper and any credit facility borrowings which had been used to finance a portion of its acquisition of the entities that comprise the Elk City Gathering and Processing System.  The partnership also noted that it will use a portion of the proceeds to fund a portion of its capital expansion projects.

The joint book-runners are Morgan Stanley, BofA Merrill Lynch, J.P. Morgan, RBC Capital Markets, UBS Investment Bank and Wells Fargo.  Enbridge Partners has also granted the underwriters a 30-day option to purchase up to an additional 780,000 units to cover any over-allotments, if any.

Enbridge Energy Partners LP is down over 3% at $60.12 shortly before the open and the 52-week trading range is $38.02 to $63.39.  The $300 million compares to a market cap at yesterday’s close of roughly $7.4 billion.

JON C. OGG