DCP Midstream Partners Raising Capital (DPM)

DCP Midstream Partners, LP (NYSE: DPM) has announced that it is selling some 4,750,000 of its common units representing limited partner interests in an underwritten public offering. As far as the use of proceeds, the partnership noted that it intends to use the net proceeds from this offering to repay debt under its revolving credit facility and for general partnership purposes.

The joint book-runners are listed as Barclays Capital, BofA Merrill Lynch, Citigroup, Credit Suisse, Morgan Stanley and Wells Fargo Securities. Co-managers are listed as Deutsche Bank Securities, J.P. Morgan and RBC Capital Markets.  The Partnership also intends to grant the underwriters a 30-day option to purchase up to 712,500 additional common units.

DCP Midstream closed up 0.8% at $49.13 and the 52-week trading range is $34.40 to $49.93.  After the news of the dilution, shares are indicated down 4% at $47.00 in the after-hours session.  The market capitalization rate at the close was $2.18 billion before considering the effects of this offering.