Chesapeake Midstream Partners LP on Tuesday said it would launch an initial public offering (IPO) to raise up to $425 million. Timing of the launch was not disclosed.
The limited partnership was formed last year in a 50-50 transaction by Oklahoma City-based Chesapeake Energy Corp. and private equity firm Global Infrastructure Partners (see Daily GPI, Sept. 28, 2009). Chesapeake contributed most of its midstream assets in the Barnett Shale and most of its nonshale midstream properties in the Arkoma, Anadarko, Delaware and Permian basins.
The filing with the Securities and Exchange Commission indicated that the IPO would issue about 1.3 million units to be priced at between $19 and $21 per unit. Net proceeds would be around $393.3 million, which would be used to repay debt, the partnership said.
Once completed, the company intends to list its common stock on the New York Stock Exchange under the symbol "CHKM."
"At the mid-point of the proposed range, Chesapeake Midstream Partners will command a market value of $2.8 billion," said Renaissance Capital. "The company, which booked $383 million in sales last year, generates roughly 75% of its revenues from its gathering systems in the Barnett Shale region and 25% from its systems in the Midcontinent region."
UBS Investment Bank, Citi and Morgan Stanley were listed as the lead underwriters.
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