By Chris Dieterich
NEW YORK--Seadrill Partners LLC (SDLP) rose in its public
trading debut, as the week's lone new offering garnered firm
investor demand.
Seadrill Partners opened at $24 on the New York Stock Exchange,
up 9.1% from its offer price of $22. The limited-liability company
sold 8.75 million units at the high end of its expected range of
$20 to $22 per unit in a deal estimated to generate net proceeds of
$175.5 million.
Units inched higher, up 11% to $24.43 in recent trading.
The deal was originally slated to launch next week, but
underwriters moved up the listing because of strong investor
demand, according to a person familiar with the deal's timing.
Seadrill Partners, formed by Norwegian oil-services company
Seadrill Ltd. (SDRL, SDRL.OS), owns, operates and acquires offshore
drilling rigs. The rigs are under long-term contracts with oil
companies such as Chevron Corp. (CVX), Total S.A. (TOT, FP.FR), BP
PLC (BP, BP.LN) and Exxon Mobil Corp. (XOM). The average remaining
term for the rigs is a little over four years, according to a
filing with the Securities and Exchange Commission.
Seadrill Partners' profit rose 5.6% to $93.9 million in the six
months ended June 30, as revenue increased 11% to $275.2
million.
Friday's launch from Seadrill Partners is the latest in a string
of limited-partnership and limited-liability offerings focused on
energy infrastructure. These offerings have offered yields that
have been a strong lure for investors. Seadrill Partners will offer
quarterly payouts of 39 cents per unit each quarter, or $1.55 per
unit annually.
Summit Midstream Partners LP (SMLP) and Susser Petroleum
Partners LP's (SUSP) debuted last month. Hi-Crush Partners LP
(HCLP) went public in August, while Northern Tier Energy LP (NTI)
went public in July.
Two more deals--MPLX LP and Lehigh Gas Partners LP--are expected
to launch next week.
Citigroup Inc. (C), Morgan Stanley (MS) and Wells Fargo &
Co. (WFC) served as the Seadrill Partners' lead underwriters.
Write to Chris Dieterich at
christopher.dieterich@dowjones.com.
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