(By Balaseshan) Energy Transfer Partners LP (NYSE:ETP), which engages in natural gas operations, said it has priced a public offering of 13.5 million common units representing limited partner interests at $44.57 per unit, a 3.1% discount to Wednesday's stock closing price.
The company also granted the underwriters a 30-day option to purchase up to an aggregate of 2.025 million additional common units. The offering is scheduled to close on July 3, 2012.
Net proceeds from the offering will be used by ETP to repay amounts outstanding under its amended and restated revolving credit facility, to fund capital expenditures related to pipeline construction projects and for general partnership purposes.
As of June 22, 2012, an aggregate of about $480.0 million of borrowings were outstanding under the company's amended and restated revolving credit facility, and there were $30.3 million of letters of credit outstanding.
As of June 20, 2012, the company had issued and outstanding 229.86 million common units, of which 177.38 million were held by the public, including about 586,000 common units held by its officers and directors, and 52.48 million common units held by Energy Transfer Equity LP (NYSE:ETE).
BofA Merrill Lynch, Barclays, Morgan Stanley, UBS Investment Bank, Citigroup Global Markets Inc., Goldman, Sachs & Co., J.P. Morgan, and Wells Fargo Securities are acting as joint book-running managers.
Raymond James and RBC Capital Markets are acting as senior co-managers and Stifel Nicolaus Weisel and Simmons & Company International are acting as junior co-managers.
ETP is trading down 6.50% at $42.99 on Thursday. The stock has been trading between $38.08 and $51 for the past 52 weeks.