Shell Midstream takes high cost funding

摘要

Master limited partnerships remain capital-constrained, even the best in class. Having looked to private funding alternatives earlier in the year, MLPs are beginning to test the cost of funding in the public markets. The simplest format is to accept a cheque. SHELL MIDSTREAM PARTNERS, an affiliate of Royal Dutch Shell, raised roughly US$350m overnight on Wednesday via block sale executed by Barclays Capital. The price paid was a steep 8.6% discount, reflecting illiquidity and the fact that this is already the second raising by Shell Midstream this year. "The main reason the discount was wider [this time] was that they came with a second deal in two months," one banker on the deal told IFR. "The market may have been unprepared. MLPs normally space their deals."