NEW YORK (
El Paso Pipeline Partners
has seen significant selling action after the opening bell on Wednesday morning after it completed an equity offering.
El Paso Pipeline Partners priced a public offering of 11.5 million common shares at $31.95 for proceeds of $367 million.
El Paso Pipeline shares opened down by between 3.5%, to a level equal to the offering price, or a loss per share of $1.14.
Trading action in El Paso Pipeline shares was heavy, with the natural gas provider reaching twice its daily average trading volume within minutes of the market open on Wednesday.
The natural gas provider plans to use the proceeds from the equity deal for general corporate purposes.
The bigger recent news item in the U.S. natural gas market is the explosion of the California pipeline operated by
El Paso Pipeline's parent corporation, El Paso, has also suffered natural gas pipeline accidents and fatalities in recent years, and in addition to legal settlements, has been required by regulators to spend hundreds of millions on pipeline improvement projects.
--Written by Eric Rosenbaum in New York.
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