El Paso Pipeline Raises $541M in IPO

The company, which was formed by El Paso Corp. to own and operate natural-gas midstream assets, said total units sold include nearly 3.8 million units from the underwriters' full exercise of their overallotment option.

The common units offered in the IPO represent about 33 percent of the outstanding equity of the company. El Paso Corp. will indirectly own the remaining interests in the partnership.

Combined with a new revolving credit facility of $425 million, the company plans to use the proceeds to make a cash payment to El Paso and to repay notes payable to its parent company.

Lehman Brothers Inc., Citi, Goldman, Sachs & Co. and UBS Securities LLC served as lead managers of the deal. Merrill Lynch & Co., Morgan Stanley, Wachovia Securities, Credit Suisse, Raymond James, RBC Capital Markets and Tudor Pickering also served as underwriters.

El Paso shares debuted on the New York Stock Exchange on Friday under the symbol "EPB." Shares have traded as high as $21.49 and as low as $20.24 since then. Wednesday morning, shares advanced 7 cents to $21.17.