Next Big Thing For Foreign Cos. — Yield-Oriented US IPOs

Law360, New York ( September 19, 2014, 11:33 AM EDT) -- Investors in the United States continue the search for yield. Over the past several years, over 60 companies with operations in the U.S. have gone public either as master limited partnerships (MLPs) or yieldcos. Over this same period, seven companies with operations exclusively or predominantly outside the U.S. have gone public in the U.S. using the same structures. We currently see significant interest in these yield-oriented structures from companies outside the U.S., particularly in Europe and Asia. The expansion of the U.S. yield-oriented market to companies with assets predominantly outside the U.S. could be a significant growth area over the next five years. This article examines some of the typical characteristics of these types of vehicles and provides some practical guidance for non-U.S. companies considering these structures....

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