Actionable Opportunities in Special Situations: Spinoffs, Bankruptcy, Restructurings


NiSource Partners $NI carve-out Columbia Pipeline Partners $CPPL has begun trading

Columbia Pipeline Partners (CPPL) began trading on the NYSE today following its carve-out from NiSource Partners (NI). Under terms of the spin-off, CPPL is transferred NI’s pipeline and storage assets, while NI retains ownership of its natural gas and electric utilities. The company priced ~46mm common units at $23.00 per unit, above the initial estimate of $19.00 to $21.00 per unit, raising more than ~1bn.

A note by Baird Energy says the pricing of the notes translates to annualized distribution of $0.67 for a yield of 2.9%. The general public will own a 50% stake in the partnership, with an option to increase to 53.5%. Source

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