By Devika Patel
Knoxville, Tenn., Sept. 4 - Regency Energy Partners LP gave further details on an $80 million private placement of series A convertible preferred units in an 8-K filed Friday with the Securities and Exchange Commission. MTP Energy Management and Harvest Partners are the lead investors for the deal, which priced Thursday.
The 4,371,586 units were sold at $18.30 apiece, pay a fixed quarterly distribution of $0.445 per unit, and are convertible into common units on a one-for-one basis.
Regency intends to use $63 million of the net proceeds to purchase an additional 5% ownership interest in the Haynesville Joint Venture from an affiliate of GE Energy Financial Services. The balance of the proceeds will be used to fund ongoing, fee-based growth projects and further strengthen Regency's position in the Haynesville Shale.
Regency is a Dallas-based natural gas and natural gas liquids company.
| Issuer: | Regency Energy Partners LP
|
| Issue: | Series A convertible preferred units
|
| Amount: | $80 million
|
| Units: | 4,371,586
|
| Price: | $18.30
|
| Dividends: | $0.445 per unit (quarterly)
|
| Conversion ratio: | One for one
|
| Warrants: | No
|
| Investors: | MTP Energy Management and Harvest Partners (lead)
|
| Settlement date: | Sept. 3
|
| Stock symbol: | Nasdaq: RGNC
|
| Stock price: | $15.39 at close Sept. 2
|
| Market capitalization: | $1.32 billion
|
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