Vanguard Natural Resources LLC (NASDAQ: VNR) has closed its public offering of 4,000,000 of its 7.75% Series C cumulative redeemable perpetual preferred units at a price of $25.00 per unit.
The underwriters have been granted a 30-day option to purchase up to an additional 600,000 Series C preferred units from the company at the public offering price less the underwriting discount. Distributions will be payable on the Series C preferred units at an initial rate of 7.75% per annum of the stated liquidation preference of $25.00, with the first distribution date of Nov. 14. The Series C preferred units are listed on the NASDAQ Global Select Market under the symbol VNRCP.
The company intends to use the net proceeds from the offering of $96.6 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 and UBS Investment Bank are acting as joint book-running managers for the offering.