Natural gas pipeline partnership Enterprise GP Holdings LP late Monday filed to sell 14.875 million units in a bid to raise up to $394.5 million in an initial public offering (IPO).

The limited partnership is the sole member of Enterprise Products GP LLC, which is the general partner of Enterprise Products Partners LP, which in turn is 100% owned by EPCO Inc. It would be traded under the ticker symbol “EPE” on the New York Stock Exchange.

The 14.875 million units include 2.1 million units to be offered to EPCO for contribution to a partnership established to benefit certain employees of EPCO, according to the Securities and Exchange Commission filing. Based on the current distribution level and partners’ capitalization of Enterprise Products Partners, Enterprise GP Holdings said it plans to pay a quarterly dividend of 25 cents/unit, or $1.00/unit on an annualized basis.

Enterprise GP Holdings said it will use the net proceeds from the IPO to repay $328.1 million of debt outstanding under its new credit facility to be entered into prior to the closing of the offering.

Citigroup and Lehman Brothers were listed as underwriters. The underwriters also have an option to purchase up to an additional 1.9 million units to cover overallotments, according to the filing.

In February, Duke Energy sold the general partner of Texas Eastern Products Pipeline Co. LLC (TEPPCO) and 2.5 million TEPPCO limited partner units to Enterprise GP Holdings and EPCO affiliates for $1.1 billion (see Daily GPI, Feb. 25).

©Copyright 2005Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.