October 25, 2017 / 10:28 PM / in 7 months

BP Midstream Partners' IPO priced below proposed range: source

(Reuters) - BP Midstream Partners’ initial public offering was priced at $18 per share, according to a source close to the matter, below the expected price range of $19 to $21 each.

The 42.5 million share offering raised about $765 million and the company is scheduled to debut on the New York Stock Exchange under the symbol “BPMP” on Thursday.

At $18, BP Midstream, a unit of British energy company BP Plc (BP.L), has a market value of about $1.9 billion.

BP Midstream is a master limited partnership (MLP) formed by London-based BP's U.S. pipeline unit and transports crude oil, refined products and diluents to customers under long-term agreements. (bit.ly/2ge6biF)

    An MLP is a tax-advantaged structure often used by pipeline and other capital-intensive companies to distribute excess cash to investors in the form of tax-deferred dividends.

    BP Midstream, which operates in Midwestern United States and in the Gulf of Mexico, posted net income attributable of $63 million for the six months ended June 30, on a pro forma basis.

    Citigroup, Goldman Sachs, Morgan Stanley, Barclays are among the top underwriters to the IPO.

    Reporting by Nikhil Subba in Bengaluru; Editing by Sriraj Kalluvila

    0 : 0
    • narrow-browser-and-phone
    • medium-browser-and-portrait-tablet
    • landscape-tablet
    • medium-wide-browser
    • wide-browser-and-larger
    • medium-browser-and-landscape-tablet
    • medium-wide-browser-and-larger
    • above-phone
    • portrait-tablet-and-above
    • above-portrait-tablet
    • landscape-tablet-and-above
    • landscape-tablet-and-medium-wide-browser
    • portrait-tablet-and-below
    • landscape-tablet-and-below