Summit Midstream Partners LP (NYSE: SMLP) has closed its previously announced underwritten public offering of common units. Including the option to purchase an additional 1,350,000 common units, which was exercised in full by the underwriters; 10,350,000 common units, consisting of 5,300,000 common units offered by SMLP; and 5,050,000 common units offered by Summit Midstream Partners Holdings LLC (SMP Holdings), were sold at a price of $38.75 per unit.
Total net proceeds from the offering, after deducting underwriting discounts and commissions and estimated offering expenses, were approximately $387.1 million, of which SMLP received approximately $198.1 million and SMP Holdings received approximately $189.0 million.
SMLP intends to use the net proceeds from this offering to fund a portion of the purchase price of its pending acquisition of all of the issued and outstanding membership interests in Red Rock Gathering Co. LLC. SMLP did not receive any proceeds from the common units sold by SMP Holdings.
Barclays, BofA Merrill Lynch, Morgan Stanley, Deutsche Bank Securities, RBC Capital Markets, Citigroup, Goldman, Sachs & Co., and Wells Fargo Securities acted as joint book-running managers for the offering. Baird and BB&T Capital Markets acted as co-managers for the offering.