Genesis begins public offerings of common units and senior notes

Genesis Energy LP (NYSE: GEL) has begun a registered underwritten public offering of 9,000,000 common units representing limited partner interests. The company expects to grant the underwriters a 30-day option to purchase up to 1,350,000 additional common units from us.

Genesis intends to use the net proceeds from the offering, including any net proceeds from the underwriters’ exercise of their option, to purchase additional common units, to fund a portion of the purchase price for its pending acquisition of the Offshore Pipeline and Services business of Enterprise Products Operating LLC and its affiliates.

The company intends to use any remaining net proceeds for general partnership purposes, including funding acquisitions (including organic growth projects) or repaying a portion of the borrowings outstanding under its revolving credit facility. If the acquisition does not close, Genesis intends to use all of the net proceeds, including any net proceeds from the underwriters’ exercise of their option to purchase additional common units, for general partnership purposes, including funding acquisitions (including organic growth projects) or repaying a portion of the borrowings outstanding under its revolving credit facility.

Wells Fargo Securities, BofA Merrill Lynch, Citigroup, Deutsche Bank Securities, Barclays, Credit Suisse, UBS Investment Bank, Raymond James, RBC Capital Markets, and BMO Capital Markets are acting as joint book-running managers for the offering and Baird, Oppenheimer & Co. and Janney Montgomery Scott are acting as co-managers.

Genesis has also begun a registered underwritten public offering of $750,000,000 in aggregate principal amount of senior unsecured notes due 2022. The notes will be co-issued with our subsidiary, Genesis Energy Finance Corp., and will be guaranteed, with certain exceptions, by substantially all of our existing and future subsidiaries.

The company intends to use net proceeds from the offering to fund a portion of the purchase price for its pending acquisition of the Offshore Pipelines and Services business of Enterprise Products Operating LLC and its affiliates.

BofA Merrill Lynch, BMO Capital Markets, Wells Fargo Securities, ABN AMRO, BBVA, Citigroup, Deutsche Bank Securities, RBC Capital Markets, Scotiabank, and US Bancorp are acting as joint book-running managers for the offering.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...