HOUSTON (AP) -- Enbridge Energy Partners LP said Wednesday that it plans to file for an initial public offering of its Midcoast Energy Partners business.
Enbridge expects to make the filing before the end of June. It said Midcoast will own 40 percent of Enbridge's natural gas and liquid natural gas midstream business. Enbridge said Midcoast will likely sell a majority of its limited partner units and expects to raise $400 million to $500 million in gross proceeds.
The company said the offering will give it a new source of funding for projects that will expand its pipeline, reduce its financing costs, allow Enbridge to focus on its crude oil business while Midcoast focuses on natural gas, provide Midcoast with access to capital markets, and will increase choices for investors.
Enbridge will own Midcoast's general partner after the IPO.
Enbridge Energy Partners units rose 58 cents, or 2 percent, to $29.84 in midday trading.