Boardwalk Pipeline Partners Floats New Units Issue

By Eric Volkman – May 30, 2013 at 5:55PM

NYSE: BWP

Boardwalk Pipeline Partners

The energy partnership will use the cash mostly to pay down debt.

Boardwalk Pipeline Partners (BWP) hopes to become nearly $330 million richer with an offering of new units. The company is floating 11 million of its common units in an underwritten public issue priced at $30.12 apiece. Additionally, the company's underwriters have been granted a 30-day purchase option for up to an additional 1.65 million units

Boardwalk said it plans to use the estimated $327.4 million net proceeds of the issue largely to retire debt. It might also use the monies for capital expenditures for what it terms "growth projects."

The joint book-running managers of the issue include Citigroup, Goldman Sachs, Morgan Stanley, and Wells Fargo's Securities unit. The offering is expected to close on June 4.

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