** Shell Midstream Partners down 1 pct after MLPraises equity to acquire pipeline assets from parent Royal DutchShell PLC
** Units rise as much as 2.2 pct in first 5 minutes beforefading, but still trading comfortably above their issue price
** Buys Lockport Crude Terminal and Auger Pipeline Systemfor $390 mln, says acquisition expected to close Nov 17 and tobe immediately accretive to earnings
** Prices follow-on offering of 8 mln units, about 11 pct ofcommon units outstanding, at $32.54, a 3 pct discount to SHLX's$33.55 close on Wednesday
** Proposed deal and acquisition discussed confidentiallywith a select group of institutional investors ahead of thelaunch helps explain the light trading volume in SHLX units sofar
** Sources cite sole bookrunner Barclays had marketed unitsovernight in range of $32.54-$32.71
** MLP also posted a Q3 results beat and boosted itsdistribution for 3rd straight qtr since its Oct 2014 IPO ; raises dividend to $.205 (from $.19), a 2.5 pctannualized yield at current prices
** SHLX has outperformed amid weak oil price environment. ToWednesday's close, units had fallen 18 pct while the benchmarkAlerian MLP index has dropped a third
** Shell Midstream offering follows successful raise by EQTMidstream on Tuesday, which broke a 2-mth drought of MLPissuance
(RM: lance.tupper.thomsonreuters.com@reuters.net)
