Units will convert to company’s common units on a one-for-one basis
By Devika Patel
Knoxville, Tenn., Aug. 8 – CSI Compressco LP said it raised $50 million in a private placement of series A convertible preferred units.
The company sold about 4.4 million units at $11.43 apiece. The purchase price is a 28.43% premium to the Aug. 5 closing share price of $8.90.
The units generally convert to common units on a one-for-one basis. They will pay an 11% quarterly distribution in cash of $0.68 per unit.
The Midland, Texas-based company is a provider of compression services and equipment for natural gas and oil production, gathering, transportation, processing, and storage.
| Issuer: | CSI Compressco LP
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| Issue: | Series A convertible preferred units
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| Amount: | $50 million
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| Units: | 4.4 million (approximate)
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| Price: | $11.43
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| Distribution: | 11%
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| Conversion ratio: | One for one (generally)
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| Warrants: | No
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| Settlement date: | Aug. 8
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| Stock symbol: | Nasdaq: CCLP
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| Stock price: | $8.90 at close Aug. 5
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| Market capitalization: | $299.35 million
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