BP Files for New York IPO of Pipeline Assets
Fox Business (Sept. 11, Kent) has learned that "BP PLC is moving forward with plans to float some of its vast network of U.S. pipelines in a move that would spin out cash from the company's infrastructure assets across America." In an SEC filing on Monday, the company's BP Midstream Partners LP subsidiary said it was planning an initial offering on the New York Stock Exchange of up to $100 million. The new entity will be structured as a master limited partnership (MLP), a tax-advantaged entity that has become increasingly popular among capital-intensive companies. "Though MLPs suffered in the oil price downturn as investors worried about the safety of their steady dividends," notes Fox, "they have proved a beneficial way for big energy companies to manage their midstream assets."
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