Vanguard Natural Resources LLC (NASDAQ: VNR) has priced its public offering of 4,000,000 of its 7.75% Series C 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 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.
The offering is expected to close on Sept. 15. The company expects to receive net proceeds of $96.6 million (or $111.1 million if the underwriters exercise their option to purchase an additional 600,000 Series C preferred units), after deducting underwriting discounts and estimated offering expenses, from the offering and intends to use the net proceeds from the offering 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.