Enbridge Energy Management LLC (NYSE: EEQ) priced an underwritten public offering of 8 million of its listed shares for total gross proceeds of $232 million before underwriters' discounts and commissions and estimated offering expenses.
The underwriters have offered the shares at prevailing market prices, or from time to time, through the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise. The offering is expected to close on Sept. 13, subject to customary closing conditions. Enbridge Management also granted the underwriters a 30-day option to purchase up to an additional 1 million shares.
Net proceeds will be used to invest in an equal number of i-units of Enbridge Energy Partners LP (NYSE: EEP). Enbridge Partners will utilize such proceeds to repay commercial paper, to finance a portion of its capital expansion program relating to its core liquids and natural gas systems and for general partnership purposes. Some or all of the net proceeds of this offering may be invested temporarily in short-term investment grade securities pending their use for such purposes.
Citigroup, J.P. Morgan, Morgan Stanley, BofA Merrill Lynch, Barclays, Credit Suisse, Deutsche Bank Securities, Goldman, Sachs & Co., RBC Capital Markets, UBS Investment Bank, and Wells Fargo Securities are joint book-running managers. The offering is made pursuant to effective shelf registration statements and a prospectus filed by Enbridge Management, Enbridge Partners, and Enbridge Inc. with the Securities and Exchange Commission.
Enbridge Energy Management LLC is an independent energy company engaged in, through its limited partner interests in Enbridge Energy Partners LP, owning and operating crude oil and liquid petroleum transportation and storage assets in the U.S. The company is based in Houston