Genesis: Underwriters exercise option to purchase additional common units

Underwriters of Genesis Energy LP’s (NYSE: GEL) registered public offering of common units have exercised their option to purchase 1,350,000 additional common units in full. Total gross proceeds from the offering, including the full exercise of the underwriters’ option to purchase additional common units, are expected to be $453,019,500. The offering is expected to close on July 22.

Genesis intends to use the net proceeds from the offering to fund a portion of the purchase price for the company’s pending acquisition of the Offshore Pipeline and Services business of Enterprise Products Operating LLC and its affiliates. Genesis 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. All closing conditions for the acquisition, other than those that are to be satisfied at the closing of the acquisition, have been satisfied or waived.

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. Baird, Oppenheimer & Co. and Janney Montgomery Scott are acting as co-managers.


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