Columbia Pipeline Partners LP (NYSE:CPPL) To Exit Alerian Index Series

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Columbia Pipeline Partners LP (NYSE:CPPL) To Exit Alerian Index Series

In a special rebalancing move, an announcement from Alerian indicates that Columbia Pipeline Partners LP (NYSE:CPPL) will be removed from Alerian MLP Index (AMZ), Alerian Mid Cap MLP Index (AMMI) and Alerian MLP Equal Weight Index (AMZE). The special rebalancing has been necessitated by the fact that there is a proposed merger between Columbia Pipeline Partners and TransCanada Corporation (USA) (NYSE:TRP), which will see the former cease trading. In most cases, special rebalancings happen following major corporate actions such as liquidations, bankruptcies, and mergers.

One trading day after press release

According to the rules, the rebalancing will occur one trading day after information has been publicly released indicating that the merger between Columbia Pipeline Partners and TransCanada has received a go-ahead from the stakeholders. Unitholders of Columbia Pipeline Partners are some of the stakeholders. The deal which is worth approximately $848 million will also have to pass antitrust laws of the United States. TransCanada became a major partner of Columbia Pipeline Partners LP beginning mid-last year.

Currently, Columbia Pipeline Partners has interests in three natural gas pipelines in the United States. These pipelines serve markets that stretch from as far as the state of New York to the Gulf of Mexico. Columbia Pipeline Partners also has interests in midstream assets such as storage facilities.

Alerian Index Series

While Alerian is responsible for adding or removing the constituent members of the series of indexes, such actions are not a reflection of an investment opinion held by Alerian. However, the goal of the Alerian Index Series is to equip investors with the necessary information required for them to make sound decisions in the fields of energy infrastructure and Master Limited Partnerships. Alerian benchmarks such as the Alerian MLP Index are widely used by the national media, research analysts, investment professionals and industry executives in the analysis of relative performance.

By the close of 2016, investments of more than $17 billion were directly tied to the Alerian Index Series through structured products, separately managed accounts and exchange-traded funds and notes.

On Tuesday shares of Columbia Pipeline Partners LP shed off 0.29 percent to close the day at $16.95.