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Energy

Enbridge Energy Partners Raising More Capital (EEP)

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By Jon C. Ogg Published
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Enbridge Energy Partners, L.P. (NYSE: EEP) has just announced that it is raising capital.  The partnership is offering approximately 7 million of its Class-A common units.  The gross proceeds would be more than $210 million based upon the $30.89 close and its market cap is currently $7.87 billion.

The Partnership gave a “use of proceeds” as being to repay a portion of its outstanding commercial paper, to repay any credit facility borrowings, to fund a portion of capital expansion projects, or any combination of such purposes.

This partnership owns and operates crude oil and liquid petroleum transportation and storage assets.  It also owns and operates natural gas gathering, treating, processing, transmission, and marketing assets and is based in Houston, Texas.

The offering group is rather large.  The listed underwriters for the offering are listed as BofA Merrill Lynch, Wells Fargo Securities, Citigroup, Morgan Stanley, and RBC Capital Markets.  The partnership is expected to grant the underwriters a 30-day option to purchase up to an additional 1.05 million units to cover overallotments.  If so, more than 8 million units will be sold.

Shares are down over 3% at $30.01 and the 52-week trading range is $25.19 to $34.58. On a split-adjusted basis, that 52-week high represents an all-time high as well.   This also offers a high “dividend equivalent” with a payout of about 6.7%.

JON C. OGG

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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