Share “As OGE IPO nears, execs shop for backers”

As OGE IPO nears, execs shop for backers

By Don Mecoy Published: January 17, 2008
Executives from OGE Energy Corp. hit the road Wednesday to pitch potential investors on the planned initial public offering for OGE Enogex Partners LP.

Later this month, the Oklahoma City company will issue 7.5 million common units priced between $18 and $20 per unit. In November, the company estimated those units would price between $19 and $21.

Officials from the company and the Oklahoma City underwriters declined to comment on the initial public offering, citing a mandated quiet period.

The partnership units will trade on the New York Stock Exchange under the ticker symbol "OGP.”

The 7.5 million units offered to the public represent a nearly 30 percent interest in the partnership. Following the offering, a subsidiary of OGE Energy will own a 68.2 percent limited partner interest in OGE Enogex.

The company expects to clear about $132.5 million from the offering.

OGE Enogex Partners plans to combine the proceeds with a short-term $300 million loan from OGE Energy and $13.9 million borrowed under a new credit agreement to redeem its $400 million, 8.125 percent senior notes due 2010.

The company, which must distribute its cash on hand at the end of each quarter, expects to distribute $1.35 each year to unit holders.

OGE Enogex generated net income of $20.6 million for the nine months ending Sept. 30.

At that time, the company controlled assets that were valued at $1 billion and had $314 million in long-term debt.

Continue reading this story on the...


  1. 1
    An Oklahoma Immigrant's Experience, Recast As Noir, In 'Dragonfish'
  2. 2
    Summer well spent: Youths shadow professionals in mentoring program
  3. 3
    Norman residents disturbed after seeing vulgar, racist graffiti on homes, vehicles
  4. 4
    Vinita police chief: Extreme sunburn case still under investigation, drawing international media...
  5. 5
    Hundreds pack memorial service for man killed at north Tulsa park
+ show more


× Trending business Article