Crestwood Midstream Partners LP (NYSE: CMLP) has priced the underwritten public offering of 14 million common units representing limited partner interests in Crestwood. The common units were sold to the underwriters at a price of $21.19 per common unit for net proceeds of approximately $296.4 million. The underwriters may offer the common units in transactions on the New York Stock Exchange, in the over-the-counter market, or through negotiated transactions at market prices or at negotiated prices. The offering is expected to close on Oct. 23. Crestwood has granted to the underwriters a 30-day option to purchase a maximum of 2,100,000 additional common units.
The net proceeds from the offering will be used to fund a portion of the consideration for Crestwood's pending acquisition of Arrow Midstream Holdings LLC. Crestwood's issuance of common units in the equity offering, including any common units issued in connection with the underwriter's option, together with the issuance of 8,826,125 common units to the sellers represents the aggregate amount of equity that Crestwood expects to issue in connection with the Arrow acquisition. In the event that the acquisition does not close, Crestwood intends to use the net proceeds from the offering to repay borrowings under its revolving credit facility and for general partnership purposes.
Morgan Stanley and Citigroup served as the underwriters.