New Issue: Vanguard Natural details $55 million 7.875% cumulative redeemable preferred units

By Stephanie N. Rotondo

Phoenix, June 13 - Vanguard Natural Resources LLC priced $55 million of 7.875% series A cumulative redeemable perpetual preferred units, according to an FWP filed with the Securities and Exchange Commission on Thursday.

The issuer noted Thursday that there is an $8.25 million, or 330,000-unit, over-allotment option.

Barclays, Credit Suisse Securities (USA) LLC, Stifel Nicolaus & Co. Inc. and MLV & Co. LLC are the joint bookrunners.

Distributions on the units will be payable on the 15th day of each month. The units become redeemable on or after June 15, 2023 at par plus accrued dividends or in the event of a change of control.

Proceeds will be used to pay down debt outstanding under a reserve-based credit facility.

Vanguard is a Houston-based oil and gas exploration and development company.

Issuer:	Vanguard Natural Resources LLC
Securities:	Series A cumulative redeemable preferred units
Amount:	$55 million, or 2.2 million units
Greenshoe:	$8.25 million, or 330,000 units
Bookrunners:	Barclays, Credit Suisse Securities (USA) LLC, Stifel Nicolaus & Co. Inc., MLV & Co. LLC
Co-managers:	BB&T Capital Markets, J.P. Morgan Securities LLC, Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc., Oppenheimer & Co., Wunderlich Securities Inc.
Dividend:	7.875%
Price:	Par of $25.00
Yield:	7.875%
Talk:	Around 7.875%
Call options:	On or after June 15, 2023 at par plus accrued dividends or in the event of a change of control
Pricing date:	June 12
Settlement date:	June 19
Expected listing:	Nasdaq: VNRAP
Cusip:	92205F205

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