Antero Resources Corp. (NYSE: AR) has reported the completion of Antero Midstream Partners LP's initial public offering of 46,000,000 common units representing limited partner interests in the Partnership at a price to the public of $25 per common unit, including the exercise in full by the underwriters of their option to purchase an additional 6,000,000 common units.
The Partnership will initially own gathering and compression assets that service Antero's natural gas, natural gas liquids, and condensate production. The public owns 30.3% of the 151,881,914 outstanding common and subordinated units, and Antero and its affiliates own the remaining 69.7% limited partner interest in the Partnership.
Net proceeds received by the Partnership from the sale of 46,000,000 common units were $1.1 billion, after deducting underwriting discounts, structuring fees and expenses. The Partnership used $843 million to repay assumed indebtedness from Antero and to reimburse Antero for certain capital expenditures incurred. The Partnership will retain $250 million of the net proceeds for general partnership purposes.
Barclays and Citigroup acted as joint book-running managers and structuring agents for the offering. Wells Fargo Securities, Credit Suisse, JP Morgan, and Morgan Stanley also acted as joint book-running managers.