Rice Energy Inc. announced the pricing of the Rice Midstream Partners LP IPO of 25 million common units representing limited partner interests at $16.50 per common unit. Rice Midstream has granted the underwriters a 30-day option to purchase up to an additional 3.75 million common units. The common units are expected to begin trading on the New York Stock Exchange under the ticker symbol “RMP.” The offering is expected to close on Dec. 22, subject to customary closing conditions.
Upon closing of the offering, the public will own about 43.5% of the limited partner interest in Rice Midstream (or about 50% if the underwriters exercise in full their option to purchase additional common units). Rice Energy and its affiliates will own the remaining 56.5% limited partner interest (or about 50% if the underwriters exercise in full their option to purchase additional common units.) Rice Energy will own Rice Midstream’s general partner and all of its incentive distribution rights.
Rice Midstream plans to use the net proceeds of the offering, expected to be about $383.7 million (or about $441.6 million if the underwriters exercise in full their option to purchase additional common units) to make a $356 million (or $413.9 million if the underwriters exercise in full their option to purchase additional common units) distribution to Rice Energy. That includes a $195.3 million reimbursement for capital expenditures incurred on Rice Midstream’s behalf, to fund $25 million of its 2015 expansion capital expenditures and to pay about $2.7 million of origination fees related to Rice Midstream’s new revolving credit facility.
Barclays, Citigroup, Wells Fargo Securities, Goldman, Sachs & Co. and RBC Capital Markets are acting as joint book-running managers for the offering.
A registration statement related to these securities has been filed with, and declared effective by, the U.S. Securities and Exchange Commission. The offering will be made only by means of a written prospectus forming part of the effective registration statement.
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