American Midstream Partners LP (NYSE: AMID) has priced an underwritten public offering of 7,500,000 common units representing limited partner interests at $11.31 per common unit. The offering is expected to close on Sept. 15. The Partnership also granted the underwriters a 30-day option to purchase up to 1,125,000 additional common units.
The Partnership intends to use the net proceeds from this offering to fund a portion of the purchase price of an equity interest in a Delaware limited liability company that will indirectly own a portion of the Delta House floating production system and related pipeline infrastructure (the Delta House acquisition).
In the event the Partnership does not consummate the Delta House acquisition, the Partnership will use the net proceeds of this offering to repay a portion of the outstanding borrowings under its credit facility and for general partnership purposes. If the underwriters exercise their option to purchase additional common units, the Partnership intends to use all of the net proceeds from the sale of additional common units to repay a portion of the outstanding borrowings under its credit facility.
BofA Merrill Lynch, Barclays, Citigroup, Deutsche Bank Securities, RBC Capital Markets, and Wells Fargo Securities are acting as joint book-running managers for the offering, and Ladenburg Thalmann and Wunderlich are acting as co-managers for the offering.