3 Partnerships Coming to Market this Week
By: Tim McPartland,
July 27, 2014 11 pm
The coming week will likely see 3 partnerships pricing and beginning to trade.
Westlake Chemical Partners is a new MLP that will come public later this coming week. The partnership is a ethylene producer with 3 production facilities in this offering. Pricing will be between $19-$21 and the minimum required quarterly distribution will provide a 5.5% yield (at $20/unit).
Transocean LTD is spinning out a new LLC–Transocean Partners LLC which will have partial ownership in 3 deepwater oil and gas drilling rigs as their initial holding. Transocean LTD is a huge ocean driller and provides lots of opportunities for ‘drop downs’ of rigs to the partnership. This issue will come with a minimum distribution of .3625/unit–for an initial yield (at $20–estimated to come to market at $19-$21/unit) of 7.25%.
VTTI Energy Partners LP will come to market late this week with an offering which will own crude oil and refined product terminals around the world. Again this is slated to come to market at $19-$21/unit with an initial distribution of .2625/unit for a 5.25% yield (at $20).