Rice Energy Inc. (NYSE:RICE) has completed the Rice Midstream Partners LP (NYSE: RMP) initial public offering of 28,750,000 common units representing limited partner interests at a price to the public of $16.50 per common unit, including the exercise in full by the underwriters' option to purchase an additional 3,750,000 common units. Rice Energy and the public each own an approximate 50% limited partner interest in Rice Midstream.
Rice Midstream intends to use the net proceeds of $441.6 million to make a $413.9 million distribution to Rice Energy, including a $195.3 million reimbursement for capital expenditures incurred on Rice Midstream's behalf, to fund $25.0 million of Rice Midstream's 2015 expansion capital expenditures, and to pay $2.7 million of origination fees related to Rice Midstream's new revolving credit facility.
Barclays, Citigroup, Wells Fargo Securities, Goldman, Sachs & Co., and RBC Capital Markets acted as joint book-running managers for the offering.
In addition, on Dec. 22, each of Rice Midstream Holdings LLC, a wholly owned subsidiary of Rice Energy formed to hold the retained midstream assets of Rice Energy, and Rice Midstream have entered into new revolving credit facilities to provide additional capital for midstream investments. Rice Midstream has entered into a $450 million revolving credit facility to fund gas gathering and compression capital expenditures in Pennsylvania. Rice Holdings has entered into a $300 million revolving credit facility to fund development for Ohio gas gathering and compression assets and water sourcing and distribution assets in Pennsylvania and Ohio.