Investors also to receive six-year warrants for 890,000 common units
By Devika Patel
Knoxville, Tenn., Aug. 8 – Emerge Energy Services LP said it plans a $20 million private placement of series A convertible preferred units.
The units are convertible into about 1.97 million common units. This is equivalent to a conversion price of $10.15 per common unit, which is a 15.34% premium to the Aug. 5 closing unit price of $8.80.
Investors also will receive six-year warrants for 890,000 common units, which are each exercisable at $10.82 per unit, which is a 22.96% premium to the Aug. 5 closing unit price of $8.80.
Settlement is expected Aug. 12.
Proceeds will be used to repay debt or for general partnership purchases.
Southlake, Texas-based Emerge Energy Services is a limited partnership formed in 2012 by management and affiliates of Insight Equity Management Co. LLC to own, operate, acquire and develop a portfolio of energy service assets.
| Issuer: | Emerge Energy Services LP
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| Issue: | Series A convertible preferred units
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| Amount: | $20 million
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| Conversion ratio: | Into about 1.97 million common units
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| Conversion price: | $10.15
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| Conversion premium: | 15.34%
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| Warrants: | For 890,000 common units
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| Warrant expiration: | Six years
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| Warrant strike price: | $10.82
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| Pricing date: | Aug. 8
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| Settlement date: | Aug. 12
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| Unit symbol: | NYSE: EMES
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| Unit price: | $8.80 at close Aug. 5
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| Market capitalization: | $241.59 million
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