Rice Midstream Partners prices IPO

Rice Energy Inc.

Rice Energy Inc. (NYSE:RICE) reports the pricing of the Rice Midstream Partners LP initial public offering (IPO) of 25,000,000 common units representing limited partner interests at $16.50 per common unit. Rice Midstream has granted the underwriters a 30-day option to purchase up to an additional 3,750,000 common units. The common units are expected to begin trading on the New York Stock Exchange on Dec. 17 under the symbol "RMP." The offering is expected to close on Dec. 22.

Upon conclusion of the offering, the public will own a 43.5% limited partner interest in Rice Midstream (or 50%, if the underwriters exercise in full their option to purchase additional common units). Rice Energy and its affiliates will own the remaining 56.5% limited partner interest in Rice Midstream (or 50%, if the underwriters exercise in full their option to purchase additional common units). Rice Energy will own the general partner of Rice Midstream and all of its incentive distribution rights.

Rice Midstream intends to use the net proceeds of $383.7 million (or $441.6 million, if the underwriters exercise in full their option to purchase additional common units) to make a $356 million (or $413.9 million, if the underwriters exercise in full their option to purchase additional common units) distribution to Rice Energy, including a $195.3 million reimbursement for capital expenditures incurred on Rice Midstream's behalf, to fund $25 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 are acting as joint book-running managers for the offering. Tudor, Pickering, Holt & Co. serves as a senior co-manager on the $413 million IPO.

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