Duncan Energy Sets IPO Price Range at $19-$21 Per Unitadmin
Duncan Energy Partners LP set its initial public offering at $19 to $21 a unit, according to a filing Friday with the Securities and Exchange Commission.
Last November, Houston-based Duncan Energy filed an IPO to sell 13 million common units representing limited partner interests, but didn’t disclose an estimated price range for the deal. The company previously said it planned to raise up to $313.95 million through the IPO.
Duncan Energy is a limited partnership formed by Enterprise Products Partners LP last September to own midstream energy assets.
The company said it will use IPO proceeds to distribute $212 million to Enterprise Products as a portion of the cash consideration and reimbursement for capital expenditures relating to the assets contributed to the company.
Duncan Energy will also use $28.2 million of the proceeds to finance its share of capital expenditures to complete expansions to the South Texas pipeline, and to pay $2.9 million of expenses associated with the offering.
In addition, Duncan Energy said it will borrow $200 million under a new credit agreement, and distribute $198.9 million to Enterprise Products in partial consideration for the assets contributed to the company.
The underwriters also have an option to purchase up to an additional 1.95 million common units to cover overallotments.
The company said its common units have been approved for listing on the New York Stock Exchange under the symbol DEP.