Energy
Enbridge Energy Partners Raising Additional Capital (EEP)
Published:
Last Updated:
Enbridge Energy Partners, L.P. (NYSE: EEP) is raising some fresh capital. The partnership has priced an 8 million common unit secondary offering at $28.20 per unit in a move that will generate net proceeds of close to $218 million.
As for the use of funds, the “use of proceeds” indicated funding a portion of its capital expansion projects, for general corporate purposes, or any combination of such purposes.
Morgan Stanley, BofA Merrill Lynch, Citigroup, J.P. Morgan, UBS, and Wells Fargo are listed as the joint book-running managers for the offering. The underwriters have been granted a 30-day option to purchase up to an additional 1.2 million units to cover any over-allotments.
The selling is coming along with the market this morning, but the selling is deeper and wider than the buyers are getting. The $28.20 per unit price compares to a $27.50 price indication this morning. The partnership closed at $29.09 yesterday and shares were above $29.50 at one point yesterday.
The $218 million size compares to a market cap of $7.44 billion based upon yesterday’s close. In short, 3% dilution is against more than a 5.3% drop in the price.
JON C. OGG
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
