Midcoast Energy Partners LP (NYSE: MEP) launched its initial public offering of 18.5 million class A common units pursuant to a registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission (SEC), the company announced Oct. 31.
Midcoast Partners will grant the underwriters a 30-day option to purchase from Midcoast Partners up to some 2.8 million units at the initial public offering price. The class A common units will be listed on the New York Stock Exchange under the ticker symbol "MEP."
The class A common units being offered represent a 40% limited partner interest in Midcoast Partners, or a 46% limited partner interest if the underwriters exercise, in full, their option to purchase additional class A common units. Enbridge Energy Partners LP (NYSE: EEP), through certain of its subsidiaries, will hold a 2% general partner interest and the remaining limited partner interest in Midcoast Partners.
BofA, Merrill Lynch, Barclays, Citigroup, Credit Suisse, Deutsche Bank Securities, Goldman, Sachs & Co., J.P. Morgan, Morgan Stanley, Wells Fargo Securities, and UBS Investment Bank are joint book-running managers. RBS, SMBC Nikko, and Ladenburg Thalmann & Co. Inc. are co-managers. The offering of these securities will be made only by means of a prospectus.
Midcoast Energy Partners LP is a limited partnership formed by Enbridge Energy Partners LP to serve as Enbridge Partners' primary vehicle for owning and growing its natural gas and NGLs midstream business in the U.S. The company is based in Houston.