New Source Energy plans $40 million convertible preferreds talked at 11% dividend, up 15%

By Rebecca Melvin

New York, May 4 – New Source Energy Partners LP launched an offering of $40 million of convertible preferred units that is expected to price after the market close Tuesday and is being talked to yield 11% with an initial conversion premium of 15%, according to a syndicate source.

The registered deal has a greenshoe for an additional 15% of the series A cumulative convertible preferred units, and is being sold via Stifel, Nicolaus & Co. Inc. as lead bookrunning manager with Robert W. Baird & Co. Inc. serving as joint bookrunning manager. Co-leads are Janney Montgomery Scott LLC, Oppenheimer & Co. and Wunderlick Securities.

Proceeds will be used to repay a portion of debt outstanding under its revolving credit facility.

Oklahoma City-based New Source Energy is an independent oil and natural gas properties company.

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