Vanguard Natural Resources LLC (NASDAQ: VNR) has closed its public offering of 7 million 7.625% Series B cumulative redeemable perpetual preferred units at a price of $25 per unit. The underwriters have been granted a 30-day option to purchase up to an additional 1,050,000 Series B preferred units from the company at the public offering price less the underwriting discount.
Distributions will be payable on the Series B preferred units at an initial rate of 7.625% per annum of the stated liquidation preference of $25, with the first distribution date of May 15. The Series B preferred units are listed on the NASDAQ Global Select Market under the symbol VNRBP.
The company intends to use the net proceeds from the offering of approximately $169.2 million, after deducting underwriting discounts and estimated offering expenses, to repay a portion of its indebtedness outstanding under its senior secured revolving credit facility.
Morgan Stanley, UBS Investment Bank, Barclays, Stifel, Credit Suisse, and MLV & Co. are acting as joint book-running managers for the offering.