Chesapeake Midstream Partners, an L.P. formed by Chesapeake Energy Corporation and Global Infrastructure Partners to operate natural gas gathering systems, announced terms for its IPO on Tuesday. The Oklahoma City, OK-based company plans to raise $425 million by offering 21.25 million units at a price range of $19-$21. At the mid-point of the proposed range, Chesapeake Midstream Partners will command a market value of $2.8 billion. The company, which booked $383 million in sales last year, generates roughly 75% of its revenues from its gathering systems in the Barnett Shale region and 25% from its systems in the Mid-Continent region. Chesapeake Midstream Partners plans to list on the NYSE under the symbol CHKM and use IPO proceeds to repay debt and for general corporate purposes. UBS Investment Bank, Citi and Morgan Stanley are the lead underwriters on the deal, for which timing was not disclosed.
