Royal Dutch Shell’s wholly owned subsidiary Shell Midstream Partners LP filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission for the proposed IPO of common units representing limited partner interests.
According to Reuters, Shell Midstream said in its IPO prospectus that it plans to use proceeds from the offering to acquire stakes in some pipeline companies from Shell Pipeline Co. LP, a U.S. unit of Royal Dutch Shell, in exchange for cash distribution.
Shell Midstream's assets will include a 43% stake in Zydeco Pipeline Co. LLC, a 28.6% stake in Mars Oil Pipeline Co. and a 49% stake in Bengal Pipeline Co. LLC, Reuters said. Zydeco, Mars Oil and Bengal Pipeline own pipelines that run along the Texas and Louisiana coasts and in offshore Louisiana. They also own pipelines that transport refined products from Gulf Coast and southeastern U.S. refineries.
Shell Midstream Partners plans to apply to list the common units on the New York Stock Exchange under the ticker symbol “SHLX.” The offering is expected in the second half of 2014.
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