Tallgrass Energy GP, LP (TEGP) IPO Opens 7% Higher

Today's IPO for Tallgrass Energy GP, LP (NYSE: TEGP) opened for trading at $30.90 after pricing 41,500,000 Class A shares representing limited partner interests at the public offering price of $29.00 per share.

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, and Baird, Scotia Howard Weil, Stifel, Tudor, Pickering, Holt & Co. and U.S. Capital Advisors are acting as co-managers for the initial public offering.

Tallgrass Energy GP is a recently formed Delaware limited partnership that will elect to be treated as a corporation for U.S. federal income tax purposes. It will contain cash-generating assets of Tallgrass Equity (NYSE: TEP).

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