Published on 3/4/2014 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Vanguard Natural Resources sells $175 million cumulative redeemable preferreds
By Stephanie N. Rotondo
Phoenix, March 4 - Vanguard Natural Resources LLC priced $175 million of 7.625% series B cumulative redeemable perpetual preferred units, according to a press release on Tuesday.
Joint bookrunners are Morgan Stanley & Co. LLC, UBS Securities LLC, Barclays, Stifel Nicolaus & Co., Credit Suisse Securities (USA) LLC and MLV & Co. LLC.
Dividends will be payable on the 15th day of each month.
The units become redeemable in 2024 or upon a change of control. If redeemed in 2024, the redemption price is par plus accrued dividends. If redeemed in a change of control, holders will have the option to convert their units into common stock units or to take the par plus accrued payout.
Proceeds from the non-rated deal will be used to repay a portion currently outstanding under a reserve-based credit facility.
The Houston-based company plans to list the units on the Nasdaq Global Market under the ticker symbol "VNRBP."
| Issuer: | Vanguard Natural Resources LLC
|
| Securities: | Series B cumulative redeemable preferred stock
|
| Amount: | $175 million, or 7 million shares
|
| Greenshoe: | $26.25 million, or 1.05 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, UBS Securities LLC, Barclays, Stifel Nicolaus & Co., Credit Suisse Securities (USA) LLC, MLV & Co. LLC
|
| Co-managers: | BB&T Capital Markets, J.P. Morgan Securities LLC, Janney Montgomery Scott LLC, Oppenheimer & Co., Drexel Hamilton LLC, Ladenburg Thalmann & Co. Inc., Sterne Agee & Leach Inc., Wunderlich Securities
|
| Dividend: | 7.625%
|
| Price: | Par of $25.00
|
| Yield: | 7.625%
|
| Talk: | 7.625% to 7.75%
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| Call option: | On or after 2024 or upon a change of control at par plus accrued dividends
|
| Pricing date: | March 4
|
| Settlement date: | March 11
|
| Expected listing: | Nasdaq: VNRBP
|
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