NEW YORK, April 29 (Reuters) - PAA Natural Gas Storage LP priced shares in its initial public offering above the expected range on Thursday and sold more shares than anticipated, according to an underwriter.
Houston, Texas-based PAA Natural Gas Storage sold 11.72 million shares for $21.50 each, raising about $252 million, the underwriter said. It had planned to sell 10 million shares between $19 and $21.
The company owns and operates two natural gas storage facilities in Louisiana and Michigan and sometimes leases additional capacity and pipeline transportation from third parties. Substantially all of its revenue comes from providing fee-based storage services under multiyear contracts.
PAA Natural Gas Storage LP is a wholly-owned subsidiary of Plains All American Pipeline LP, a master limited partnership that transports, stores and markets crude oil, refined products and LPG.
Plains All American became the sole owner of the company on Sept. 3 after paying $220 million plus a contingent cash consideration of $40 million for the 50 percent stake owned by Paul Allen's Vulcan Capital.
As of Dec. 31, PAA Natural Gas Storage said it had $451 million worth of debt outstanding to Plains All American, with a fixed interest rate of 6.5 percent. The company said it plans to use proceeds from the IPO, along with additional credit, to pay back Plains All American, and for general purposes.
Underwriters on the PAA Natural Gas IPO were led by Barclays Capital, UBS Investment Bank, Citi and Wells Fargo Securities. The shares are expected to begin trading on the New York Stock Exchange on Friday under the symbol 'PNG'.
(Reporting by Clare Baldwin; Editing by Tim Dobbyn) Keywords: PAA/IPO (clare.baldwin@thomsonreuters.com; Reuters Messaging: clare.baldwin.reuters.com@reuters.net; +1 646 223 6189) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Houston, Texas-based PAA Natural Gas Storage sold 11.72 million shares for $21.50 each, raising about $252 million, the underwriter said. It had planned to sell 10 million shares between $19 and $21.
The company owns and operates two natural gas storage facilities in Louisiana and Michigan and sometimes leases additional capacity and pipeline transportation from third parties. Substantially all of its revenue comes from providing fee-based storage services under multiyear contracts.
PAA Natural Gas Storage LP is a wholly-owned subsidiary of Plains All American Pipeline LP, a master limited partnership that transports, stores and markets crude oil, refined products and LPG.
Plains All American became the sole owner of the company on Sept. 3 after paying $220 million plus a contingent cash consideration of $40 million for the 50 percent stake owned by Paul Allen's Vulcan Capital.
As of Dec. 31, PAA Natural Gas Storage said it had $451 million worth of debt outstanding to Plains All American, with a fixed interest rate of 6.5 percent. The company said it plans to use proceeds from the IPO, along with additional credit, to pay back Plains All American, and for general purposes.
Underwriters on the PAA Natural Gas IPO were led by Barclays Capital, UBS Investment Bank, Citi and Wells Fargo Securities. The shares are expected to begin trading on the New York Stock Exchange on Friday under the symbol 'PNG'.
(Reporting by Clare Baldwin; Editing by Tim Dobbyn) Keywords: PAA/IPO (clare.baldwin@thomsonreuters.com; Reuters Messaging: clare.baldwin.reuters.com@reuters.net; +1 646 223 6189) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.