Enbridge Energy Partners Raising Additional Capital (EEP)

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