Springleaf, Plains GP Move Up IPOs Before U.S. Debt Deadline

Springleaf Holdings Inc., a subprime consumer lender, and pipeline company Plains GP Holdings LP (PAGP) moved their initial public offerings up by a day, avoiding trading debuts on the deadline to raise the U.S. debt ceiling.

Springleaf and Plains GP raised a combined $3.17 billion in their IPOs, according to company statements yesterday. Plains closed at its debut price of $22 as of 4:15 p.m. in New York, and Springleaf jumped 13 percent to $19.26.

The IPOs were originally set to price today and start trading on the 17th, the day the U.S. government’s borrowing authority was projected to lapse. Congress is poised to end the 16-day government shutdown and raise the U.S. debt limit after lawmakers reached an agreement to end the fiscal impasse. Still, concern about volatility as the deadline arrived may have prompted the companies’ moves, according to Jeff Sica, chief investment officer of Sica Wealth Management LLC.

“There’s enough reason to just price now and get it behind you rather than deal with continued uncertainty,” said Sica, who oversees about $1 billion at Morristown, New Jersey-based Sica Wealth Management. “You can’t entirely predict how the market is going to react.”

The shares of the two companies are listed on the New York Stock Exchange under the symbols LEAF and PAGP. Springleaf moved its offering up one day due to the debt-ceiling threat, said a person familiar with the matter. A representative for Springleaf, (LEAF) based in Evansville, Indiana, didn’t respond to a request for comment outside of normal business hours. Roy Lamoreaux, director of investor relations at Houston-based Plains GP, declined to comment on the company’s decision to move up its IPO.

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The S&P 500, the benchmark for U.S. stocks, rose 1.4 percent to 1,721.54 today after slipping 0.7 percent yesterday. The Dow Jones Industrial Average advanced 1.4 percent to 15,373.83.

Plains GP, formed to pay dividends on behalf of oil-and-gas partnership Plains All American Pipeline LP (PAA), raised $2.82 billion selling 128 million shares for $22 each, the low end of the marketed price range.

Springleaf, backed by Fortress Investment Group LLC (FIG), raised $357.8 million, selling 21 million shares for $17 apiece, an increased number of shares at the top of the range. Springleaf sold 11.6 million shares, according to its statement, while existing shareholders sold 9.4 million.

To contact the reporters on this story: Leslie Picker in New York at lpicker2@bloomberg.net; Lee Spears in New York at lspears3@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net

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