Vanguard Natural Resources to offer cumulative redeemable preferred stock units

By Stephanie N. Rotondo

Phoenix, March 4 - Vanguard Natural Resources LLC is planning to sell at least $75 million of series B cumulative redeemable perpetual preferred units, according to a prospectus filed with the Securities and Exchange Commission on Tuesday.

Price talk is 7.625% to 7.75%, a trader said.

Joint bookrunners are Morgan Stanley & Co. Inc., UBS Securities LLC, Barclays, Stifel Nicolaus & Co., Credit Suisse Securities (USA) LLC and MLV & Co. LLC.

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. and Wunderlich Securities are the co-managers.

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 during 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."

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