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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 $64.44 billion as of Aug. 4, according to S&P Global Market Intelligence data. The total comprises $48.13 billion of senior debt, $11.62 billion of common equity, $2.65 billion of subordinated debt, $1.56 billion of preferred equity and $480 million of trust preferred shares in 2017.

By sector, power companies have raised $38.05 billion of capital, midstream companies have raised $21.32 billion, the coal sector has raised $2.81 billion and gas utilities have raised $2.26 billion. Of the total common equity raises in 2017, energy companies raised $6.45 billion from 15 follow-on offerings, $2.12 billion from eight private-placement transactions, $1.68 billion from 41 at-the-market transactions, $920 million from four "other" transactions and $440 million from three IPOs.

* Archrock Partners LP on Aug. 3 sold $55 million of 4 million common units at $13.75 apiece. The partnership intends to use the proceeds to pay down borrowings outstanding under its revolving credit facility and for general partnership purposes. J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Merrill Lynch Pierce Fenner & Smith Inc. and RBC Capital Markets LLC served as joint book-running managers.

* Kinder Morgan Inc. on Aug. 3 sold $1.25 billion of senior unsecured notes due Jan. 15, 2023, to repay debt, redeem 5.50% senior notes due 2022 through its subsidiary Hiland Partners Holdings LLC and for general corporate purposes. The company sold $1 billion of 3.15% senior notes and $250 million of floating-rate senior notes. Barclays Capital Inc., J.P. Morgan Securities LLC and Merrill Lynch Pierce Fenner & Smith Inc. acted as joint book-running managers, among others.

* Georgia Power Co. on Aug. 3 sold $500 million of 2% series C senior notes due Sept. 8, 2020. The Southern Co. subsidiary will use the sale proceeds to repay all or a portion of its $50 million floating rate bank loan and outstanding commercial paper borrowings, and any remaining net proceeds will be used for general corporate purposes. Barclays Capital Inc., MUFG Securities Americas Inc. and Scotia Capital (USA) Inc. served as joint book-running managers.

* Southwestern Public Service Co. on Aug. 2 sold $450 million of its 3.70% first mortgage bonds series No. 5 due Aug. 15, 2047. The Xcel Energy Inc. subsidiary intends to use net proceeds from the offering to repay short-term borrowings, fund the Aug. 30 redemption of $250 million of its series G senior notes 8.75% due Dec. 1, 2018, and for general corporate purposes.

* Portland General Electric Co. on Aug. 2 sold $225 million of its 3.98% first mortgage bonds due Aug. 3, 2048. Wells Fargo Bank NA acted as the trustee.

* DTE Electric Co. on July 31 sold $440 million of 3.75% series B general and refunding secured mortgage bonds due Aug. 15, 2047. The DTE Energy Co. subsidiary will use the net proceeds to repay $300 million of the company's 2008 series G 5.60% senior notes due June 15, 2018, to repay short-term borrowings and for general corporate purposes. Barclays Capital Inc., Merrill Lynch Pierce Fenner & Smith Inc. and Wells Fargo Securities LLC acted as joint book-running managers, among others.

* Viper Energy Partners LP on July 17 sold $237.5 million of 16.1 million common stock at $14.75 per share to repay the outstanding borrowings under its revolving credit facility, to fund a portion of the purchase price for the pending acquisitions and for general partnership purposes, which may include additional acquisitions. Credit Suisse Securities (USA) LLC served as the sole book-running manager.

* ONEOK Inc. on July 10 sold $1.2 billion of senior unsecured notes. The offering comprises $700 million of 4.95% senior notes due July 13, 2047, and $500 million of 4% senior notes due July 13, 2027. The sale proceeds will be used for general corporate purposes, which may include repayment of existing debt and CapEx. Citigroup Global Markets Inc., Barclays Capital Inc. and Merrill Lynch Pierce Fenner & Smith Inc. acted as joint book-running managers, among others.

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