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BP Midstream Partners LP, the master limited partnership (MLP)
formed by BP's U.S. pipeline unit, said in a regulatory filing
it plans to list on the New York Stock Exchange under the symbol
"BPMP".
An MLP is a tax-advantaged structure often used by pipeline and
other capital intensive companies. They do not pay corporate
income tax on distributions, or earnings, to partners.
The offering comes nearly two months after BP laid out plans to
spin off some of its U.S. Midwest and Gulf Coast pipeline assets
in an IPO to raise cash.
The IPO revives a plan first broached internally about five
years ago before slumping crude oil prices caused BP to put the
idea on hold, a source told Reuters in July.
Other energy companies that have spun off their pipeline assets
include Royal Dutch Shell <RDSa.L> — which in 2014 raised nearly
$1 billion in the largest master limited partnership IPO to date
— and refiners such as Valero Energy Corp <VLO.N>, Tesoro Corp <TSO.N>
and Marathon Petroleum Corp <MPC.N>.
Citigroup, Goldman Sachs, Morgan Stanley, Barclays, Credit
Suisse and JPMorgan are among underwriters for BP Midstream
Partners' IPO.
BP Midstream said it intends to raise up to $100 million in the
IPO.
The amount of money a company says it plans to raise in its
first IPO filings is used to calculate registration fees. The
final size of the IPO could be different.
(Reporting By Aparajita Saxena in Bengaluru)
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