JP Energy Partners LP opened its IPO of about 13.8 million common units, the company said Sept. 22. The units represent limited partner interests, the company added.
Underwriters were granted the option to purchase about 2 million additional common units. According to the S-1 filing, all units, including the additional, were priced at $20 each. The company expects net proceeds of about $257.1 million, the filing added.
They will pay about $2 million in offering expenses, redeem all of the issued, outstanding Series D preferred units for about $42.4 million and repay $195.6 million in outstanding revolving credit facility debt. About $17.1 million in working capital will also be replenished by the proceeds, according to the filing.
The units were approved to list on the New York Stock Exchange under the ticker symbol “JPEP,” the company noted.
The units represent a limited partner interest of about 37.7%, the company added.
Barclays Plc (NYSE: BCS), BofA Merrill Lynch, RBC Capital Markets and Deutsche Bank Securities Inc. are joint book-running managers. BMO Capital Markets, Baird, Simmons & Co. International, Stephens Inc. and Janney Montgomery Scott LLC are co-managers, JPE Energy said.
Irving, Texas-based JP Energy Partners LP was formed by members of its management and was backed by a fund managed by ArcLight Capital Partners LLC. It owns, operates, develops and acquires domestic midstream assets.
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