Columbia Pipeline threads funding needle

摘要

Betwixt and between issuing high-cost equity and a potential credit downgrade, Columbia Pipeline Group (CPGX) settled on the former by raising US$1.25bn on an upsized, overnight stock sale. The equity raising fully funds the pipeline company's capex needs to at least the end of 2016 and avoids the need to draw down on its bank facilities. The basics of the transaction saw Goldman Sachs and Credit Suisse place 71.5m shares on Wednesday morning at US$17.50, versus a US$19.05 last sale and an increase from the 51m shares launched after the market close on Tuesday - Barclays, Citigroup and IP Morgan were added late in the process. To say the deal was well received is an understatement. CPGX did plunge to a low of US$17.87 but recovered to close the week at US$18.51 - a cumulative US$70m-plus gain for investors that participated.