How Buckeye Partners Plans to Finance the VTTI Acquisition

Buckeye Partners (BPL) plans to finance its VTTI deal with an equity offering. In a press release published on October 24, the partnership announced a public offering of 7.8 million common units. The offering units are priced at $66.05 per unit. BPL’s share closed at $70.60 on the day of the announcement.

Buckeye Partners’ stock may fall initially. However, the partnership’s shares could rise following the completion of the equity offering, driven by the asset acquisition announcement. BPL has gained 7.1% YTD (year-to-date). Meanwhile, the Alerian MLP ETF’s (AMLP), which comprises 26 midstream energy MLPs, has gained 4.9%. Peers Sunoco Logistics Partners (SXL) and NuStar Energy (NS) have gained 8.1% and 21.3%, respectively, in 2016.