Private investment fund Global Infrastructure Partners' offering
of 9.3 million units in Chesapeake Midstream Partners LP (CHKM)
priced at a 3.6% discount to Wednesday's close.
Units slid 4% to $28.58 in pre-market trading, compared with the
offering price of $28.70 a unit.
Chesapeake Midstream disclosed Wednesday that GIP planned to
sell its stake in the pipeline operator. Chesapeake Midstream won't
receive any of the proceeds from the offering and said the number
of outstanding common units remain unchanged.
Chesapeake Midstream was formed by natural-gas giant Chesapeake
Energy Corp. (CHK) and GIP to operate gas-gathering systems and
other midstream energy assets. It went public in 2010.
Chesapeake Energy has recently spun off several gas-distribution
assets and is working to diversify its upstream holdings to lessen
its exposure to natural gas as prices for the fuel wallow in North
America.
GIP indirectly owns half of Chesapeake Midstream's general
partner.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; nathalie.tadena@dowjones.com;