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

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Energy capital raises in 2017: Power sector continues brisk pace of 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 $31.45 billion as of March 31, according to S&P Global Market Intelligence data. The total comprises $23.63 billion of senior debt, $7.23 billion of common equity and $590 million of preferred equity in 2017.

By sector, power companies have raised $17.48 billion of capital, midstream companies have raised $13.35 billion, the coal sector has raised $960 million and gas utilities have raised $810 million. Of the total common equity raises in 2017, energy companies raised $5.32 billion from 11 follow-on offerings, $1.32 billion from three private placement transactions, about $310 million from seven at-the-market transactions, $220 million from three other transactions and $51.3 million from an initial public offering.

* MPLX LP on March 31 completed an approximately $3.1 million private placement of 85,436 general partner units and an at-the-market issue of 4,151,258 common units. The partnership will use the proceeds from the common issue for general partnership purposes. J.P. Morgan Securities LLC, Merrill Lynch Pierce Fenner & Smith Inc. and Citigroup Global Markets Inc. acted as the selling agents in the common transaction, among others.

* Sunoco LP on March 30 completed a $300 million private placement of 12 million variable rate series A perpetual preferred units at $25 apiece to repay borrowings under its revolving credit facility.

* Exelon Corp. on March 29 remarketed its 2.5% junior subordinated notes due 2024 into $1.15 billion of 3.497% junior subordinated notes due June 1, 2022. Exelon will not directly receive any proceeds from the issuance and sale of the remarketed notes. The proceeds from the issuance and sale of the remarketed notes will be used to purchase a portfolio of treasury securities maturing on or around May 31. The company expects that a portion of the funds generated upon maturity of the portfolio will be used June 1 to settle the purchase contracts it entered as a part of the equity units. Citigroup Global Markets Inc., Goldman Sachs & Co. and Merrill Lynch Pierce Fenner & Smith Inc. served as remarketing agents, among others.

* Northwest Pipeline LLC on March 29 sold $250 million of 4% senior unsecured notes due April 1, 2027. The Williams Cos. Inc. subsidiary will use the the net proceeds to repay its $185 million of 5.95% senior notes due April 15 and for general corporate purposes. Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. acted as joint book-running managers.

* Oklahoma Gas and Electric Co. on March 28 sold $300 million of its 4.15% senior unsecured notes due April 1, 2047. The OGE Energy Corp. subsidiary will add the net proceeds to its general funds, which will be used for general corporate purposes such as repaying short-term debt and funding its ongoing CapEx program. Mizuho Securities USA Inc., RBC Capital Markets LLC and Wells Fargo Securities LLC served as joint book-running managers.

* Foresight Energy LP on March 27 sold $60.6 million worth of 9,628,108 common units at $6.2941 apiece to Murray Energy Corp. and one of its affiliates. The proceeds were used to repay $54.5 million of second-lien notes.

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