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Energy capital raises in 2017: Power sector continues brisk pace of debt raises

This Data Dispatch will be updated throughout 2017 to tally capital offerings in the U.S. energy industry. Click here for a spreadsheet listing all energy capital offerings since Nov. 4, 2009.

The U.S. energy industry aggregate year-to-date capital raised reached $94.01 billion as of Oct. 6, according to S&P Global Market Intelligence data. The total comprises $70.88 billion of senior debt, $12.75 billion of common equity, $5.38 billion of subordinated debt, $4.52 billion of preferred equity and $480 million of trust preferred shares in 2017.

By sector, power companies have raised $52.72 billion of capital, midstream companies have raised $35.02 billion, gas utilities have raised $3.43 billion and the coal sector has raised $2.81 billion. Of the total common equity raises in 2017, energy companies raised $6.86 billion from 22 follow-on offerings, $2.42 billion from nine private-placement transactions, $1.84 billion from 47 at-the-market transactions, $1.06 billion from five "other" transactions and $570 million from four IPOs.

* Phillips 66 Partners LP on Oct. 6 sold $1.05 billion of its units consisting of $750 million of newly issued series A perpetual convertible preferred units at $54.27 per unit and $300 million of 6,304,204 common units at $47.59 apiece. The partnership will use the proceeds to fund its acquisition of a 25% stake in each of Dakota Access LLC and Energy Transfer Crude Oil Co. LLC, collectively called Bakken Pipeline, and Phillips 66 Co.'s 100% interest in Merey Sweeny LP as well as general partnership purposes.

* Plains All American Pipeline LP on Oct. 4 sold $800 million of 800,000 series B cumulative redeemable preferred units to repay debt under its credit facilities and commercial paper program and for general partnership purposes such as acquisitions and CapEx. J.P. Morgan Securities LLC, Merrill Lynch Pierce Fenner & Smith Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC acted as joint book-running managers.

* Energy Transfer Equity LP on Oct. 3 sold $1 billion of 4.25% senior unsecured notes due March 15, 2023, to repay a portion of ETE's debts under its senior secured term loan facility and for general partnership purposes. Morgan Stanley & Co. LLC, Mizuho Securities USA LLC and Credit Suisse Securities (USA) LLC served as joint book-running managers, among others.

* Eversource Energy on Oct. 2 sold $900 million of its senior unsecured notes to repay outstanding short-term debt. The company sold $450 million of 2.75% series K notes due March 15, 2022, and $450 million of 2.90% series L notes due Oct. 1, 2024. Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC and U.S. Bancorp Investments Inc. acted as joint book-running managers.

* NSTAR Electric Co. on Oct. 2 sold $350 million of 3.2% senior unsecured debentures due May 15, 2027, to redeem its outstanding $400 million of 5.625% debentures due Nov. 15. BNY Mellon Capital Markets LLC, KeyBanc Capital Markets Inc. and RBC Capital Markets LLC served as joint book-running managers.

* Wisconsin Power and Light Co. on Oct. 2 sold $300 million of 3.05% senior unsecured notes due Oct. 15, 2027. The Alliant Energy Corp. subsidiary will use the proceeds to reduce commercial paper and for general corporate purposes. Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Merrill Lynch Pierce Fenner & Smith Inc. acted as joint book-running managers.

* Madison Gas and Electric Co. on Oct. 2 sold $30 million of 3.11% senior unsecured notes due Oct. 1, 2027. The MGE Energy Inc. subsidiary will use the proceeds to cover CapEx and other corporate obligations.

* Roanoke Gas Co. on Oct. 2 sold $8 million of 3.58% senior unsecured notes due Oct 2, 2027, to refinance a portion of its borrowings under its variable rate line of credit.

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