Stephen Lacey is US Editor for International Financing Review, helping to oversee editorial content across the region. He has particular expertise in coverage of the equity capital markets – IPOs, follow-on stock sales, and equity-linked securities – spanning the entire corporate life cycle, from venture and private equity to entry and maturation in the public markets.
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The long-awaited consolidation of midstream MLPs is in full swing. In the latest in a series of high-profile transactions over the past month, Anadarko Petroleum affiliate Western Gas Partners secured the equity component for its US$1.5bn acquisition of Nuevo Midstream on an overnight basis Wednesday after agreeing to the purchase earlier in the day.
Witness the progressively lower yield achieved on recent MLPs and one can’t help but be impressed.
Master limited partnerships almost universally comprise a complex web of corporate structures. At the bottom is the MLP itself, controlled by a traditionally structured tax-paying corporate as general partner of the MLP – sometimes the general partnership interest is itself floated as a separate public company.