UPDATE 2-Shell launches U.S. pipeline IPO

Wed Jun 18, 2014 3:49pm GMT

* Shell Midstream Partners LP files to raise up to $750 million

* Intends to list units on NYSE under the symbol "SHLX"

* Offering expected in the second half of this year (Adds details on MLP assets, background)

By Swetha Gopinath

June 18 (Reuters) - Royal Dutch Shell Plc said it would spin off some of its U.S. pipelines into a master limited partnership (MLP) and take it public, becoming the first of the industry majors to use such a structure to monetize assets.

Shell Midstream Partners LP filed with U.S. regulators on Wednesday to raise up to $750 million in an initial public offering of common units.

Companies holding midstream assets, such as pipelines and storage facilities, and structured as MLPs have found favor with investors as they distribute most of their earnings to shareholders.

The listing of two MLPs, PBF Logistics LP and GasLog Partners LP, in May stood out in a lackluster IPO market.

Shell Midstream, which owns stakes in four onshore and offshore pipelines in Texas and Louisiana, said in its IPO prospectus that it plans to use proceeds from the offering to acquire stakes in Shell's other pipelines.   Continued...

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