IPOBoutique Brief – 2.6.2015 – Billion Dollar Pipeline Raise

The week started with 11 deals “scheduled” to come to market with only three pricing and coming to market.  We won’t focus on the eight deals that failed to price…but we will look at one of the deals that is making its debut today, Columbia Pipeline Partners (NYSE: CPPL).

Columbia Pipeline Partners, the midstream affiliate of NiSource (NYSE: NI), raised just under $1.1bn from an IPO.  The deal saw strong demand evidence by the IPO being up-sized from 40 million shares to 46.8 million shares as well as the above range pricing.

If and when the underwriters exercise the over-allotment option, the IPO will then be boosted to a $1.24 billion which beats Antero Midstream Partners (NYSE:AM) as the largest MLP on record.  In terms of yield comparison, Columbia’s MLP will pay a 2.9% yield as compared to the yield of 2.72% of ‘AM’.