Boardwalk Pipeline Partners, LP (NYSE: BWP) has priced its planned and proposed secondary offering of 10,000,000 units representing limited partner interests at a price of $25.30 per unit. 

For an offering of this size it has a huge underwriting group.  Citigroup, Lehman Brothers, Morgan Stanley and UBS were listed as the joint book-running managers for the offering. The senior co-manager is Wachovia Securities and junior co-managers are listed as Credit Suisse, Morgan Keegan, and RBC Capital Markets.

Boardwalk said it will receive net proceeds after expenses of approximately $248.5 million, including the general partner’s proportionate capital contribution of $5.2 million.  Boardwalk also granted underwriters an over-allotment option to purchase up to an additional 1,500,000 common units.

The net proceeds raised from this offering will be used to fund a portion of costs of its expansion projects, either directly, or indirectly by increasing its borrowing capacity available for such projects through debt repayment under its revolving credit facility.

Shares closed down almost 6% today at $25.30, so the discounting looks like it came from today’s selling pressure.  Shares fell by about 2% to $24.72 in after-hours trading.  Its 52-week trading range is $21.24 to $37.39.  Just five days ago the units for this LP were north of $28.00.

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Jon C. Ogg
June 10, 2008

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