Tallgrass Energy GP LP has priced its initial public offering of 41,500,000 Class A shares representing limited partner interests at the public offering price of $29 per share. The Class A shares are scheduled to begin trading May 7 on the New York Stock Exchange under the symbol “TEGP.”
Tallgrass has granted the underwriters an option to purchase up to an additional 6,225,000 Class A shares from Tallgrass at the initial public offering price. The offering is expected to close on May 12.
After the offering, TEGP will own membership interests in Tallgrass Equity LLC, which will own a 100% membership interest in Tallgrass MLP GP LLC (TEP GP) and 20 million common units of Tallgrass Energy Partners LP (TEP). TEP GP currently owns all of the incentive distribution rights and a 1.37% general partner interest in TEP. TEP is a publicly traded, growth-oriented limited partnership formed to own, operate, acquire, and develop midstream energy assets in North America.
Citigroup, Goldman, Sachs & Co., BofA Merrill Lynch, Barclays, Credit Suisse, Deutsche Bank Securities, Morgan Stanley, RBC Capital Markets, and Wells Fargo Securities are acting as joint book-running managers. Baird, Scotia Howard Weil, Stifel, Tudor, Pickering, Holt & Co., and US Capital Advisors are acting as co-managers for the initial public offering.