Sanchez Production Partners LP (NYSEMKT:SPP) today announced that it has commenced an underwritten public offering of 8,823,529 common units representing limited partner interests in SPP, at an anticipated public offering price between $16.00 and $18.00 per common unit, pursuant to a registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission (the “SEC”). SPP expects to grant the underwriters a 30-day option to purchase up to an additional 1,323,530 common units at the public offering price. SPP intends to use the net proceeds received in connection with the offering as follows: (i) approximately $80 million to acquire a 50% equity interest in Carnero Processing, LLC (“Carnero Processing”) from Sanchez Energy Corporation (NYSE:SN) (“Sanchez Energy”); (ii) approximately $24.9 million to pay the purchase price, after normal and customary adjustments, for certain wellbores and escalating working interests and other production assets that SPP intends to acquire from Sanchez Energy; and (iii) the remaining net proceeds to repay borrowings outstanding under the Partnership’s credit facility (including borrowings that may result from the Partnership’s letters of credit, if any).
Citigroup, RBC Capital Markets, BofA Merrill Lynch and Johnson Rice & Company L.L.C. are acting as the joint book-running managers for the offering and Johnson Rice & Company L.L.C. is acting as the structuring agent. Seaport Global Securities, Stephens Inc. and Tudor, Pickering, Holt & Co. are acting as the co-managers for this offering. The offering is being made only by means of a written prospectus meeting the requirements of Section 10 of the Securities Act of 1933. When available, a copy of the preliminary prospectus may be obtained from:
| Citigroup c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, NY 11717 Phone: (800) 831-9146 |
RBC Capital Markets
200 Vesey Street, 8th Floor New York, NY 10281-8098 Attention: Equity Syndicate Phone: (877) 822-4089 Email: [email protected]
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| BofA Merrill Lynch
NC1-004-03-43 200 North College Street, 3rd Floor Charlotte, NC 28255-0001 Attention: Prospectus Department Email: [email protected] |
Johnson Rice & Company L.L.C.
639 Loyola Avenue, Suite 2775 New Orleans, LA 70113 Attention: Syndicate Department Phone: (800) 443-5924 |
When available, to obtain a copy of the preliminary prospectus free of charge, visit the SEC’s website at www.sec.gov.
A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
ABOUT THE PARTNERSHIP
SPP is a publicly-traded limited partnership focused on the acquisition, development, ownership and operation of midstream and production assets in North America. The Partnership owns an oil and natural gas gathering and processing system located in the Eagle Ford Shale in Dimmit, Webb and La Salle Counties, Texas. The Partnership also currently owns producing reserves in the Eagle Ford Shale in South Texas, the Gulf Coast region of Texas and Louisiana, and across several basins in Oklahoma and Kansas. The Partnership previously announced and continues to explore the possible divestiture of its remaining assets and operations in Oklahoma and Kansas.
