SemGroup Announces Commencement of Public Offering

SemGroup Energy Partners, L.P. today announced the commencement of an underwritten public offering of six million of its common units representing limited partner interests pursuant to a registration statement on Form S-1 previously filed with the Securities and Exchange Commission. The underwriters will be granted a 30-day over-allotment option to purchase up to 900,000 additional common units.

The net proceeds from this offering will be used to partially fund the previously announced acquisition of 46 U.S. liquid asphalt cement and residual fuel oil terminalling and storage facilities with an aggregate shell capacity of approximately 6.6 million barrels from SemMaterials, L.P., which is a subsidiary of privately owned SemGroup, L.P.

Upon conclusion of the offering, the public will own approximately 60.6 percent of the outstanding equity of SemGroup Energy Partners, or approximately 61.6 percent if the underwriters exercise their over-allotment option in full. SemGroup will indirectly own the remaining equity interests in SemGroup Energy Partners.

Citi and Lehman Brothers will act as joint bookrunning managers for the offering. In addition, Goldman, Sachs & Co., Merrill Lynch & Co., UBS Investment Bank, Wachovia Securities, JPMorgan, Raymond James, RBC Capital Markets and Sanders Morris Harris will act as co-managers for the offering.



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