BreitBurn Energy Partners LP (NASDAQ:BBEP) has priced a public offering of 7.0 million 8.25% Series A cumulative redeemable perpetual preferred units of the Partnership at a price to the public of $25.00 per unit. The Partnership has granted the underwriters a 30-day option to purchase up to an additional 1.0 million Series A preferred units.
Distributions will be payable on the Series A preferred units at a rate of 8.25% per annum of the stated liquidation preference of $25.00. The offering is expected to close on May 21.
The Partnership expects to receive net proceeds of approximately $169.1 million (or approximately $193.3 million if the underwriters exercise in full their option to purchase an additional 1.0 million Series A preferred units) and intends to use the net proceeds from the offering to reduce outstanding borrowings under its bank credit facility.
Morgan Stanley, UBS Investment Bank, Wells Fargo Securities, and MLV & Co. acted as joint book-running managers of the offering.