Chesapeake Energy Corporation : GIP's 9.3 Million Unit-Stake In Chesapeake Midstream Prices At 3.6% Discount
02/02/2012| 09:37am US/Eastern
Private investment fund Global Infrastructure Partners' offering of 9.3 million units in Chesapeake Midstream Partners LP (>> Chesapeake Midstream Partners, L.P.) priced at a 3.6% discount to Wednesday's close.
Units slid 4% to $28.58 in pre-market trading, compared with the offering price of $28.70 a unit.
Chesapeake Midstream disclosed Wednesday that GIP planned to sell its stake in the pipeline operator. Chesapeake Midstream won't receive any of the proceeds from the offering and said the number of outstanding common units remain unchanged.
Chesapeake Midstream was formed by natural-gas giant Chesapeake Energy Corp. (>> Chesapeake Energy Corporation) and GIP to operate gas-gathering systems and other midstream energy assets. It went public in 2010.
Chesapeake Energy has recently spun off several gas-distribution assets and is working to diversify its upstream holdings to lessen its exposure to natural gas as prices for the fuel wallow in North America.
GIP indirectly owns half of Chesapeake Midstream's general partner.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; email@example.com;