By Stephanie N. Rotondo and Toni Weeks
Phoenix, Sept. 10 – Vanguard Natural Resources LLC priced $100 million of 7.75% $25-par series C cumulative redeemable perpetual preferred units at par on Wednesday, according to a news release.
Underwriters have a 30-day over-allotment option for an additional 600,000 preferreds.
Morgan Stanley & Co. LLC and UBS Securities LLC are the joint bookrunning managers. Joint lead managers include Barclays, Credit Suisse Securities (USA) LLC and MLV & Co. LLC.
Distributions on the units will be made monthly. The company can redeem the units after a certain time period or upon a change of control at par plus accrued distributions.
The company will apply to list the securities on the Nasdaq Global Select Market under the ticker symbol “VNRCP.”
Settlement is expected Sept. 15.
Proceeds will be used to repay a portion of the debt under the company’s senior secured revolving credit facility.
Vanguard is a Houston-based oil and gas exploration and development company.
| Issuer: | Vanguard Natural Resources LLC
|
| Securities: | Series C cumulative redeemable perpetual preferred stock
|
| Amount: | $100 million, or 4 million shares
|
| Greenshoe: | $15 million, or 600,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, UBS Securities LLC
|
| Lead managers: | Barclays, Credit Suisse Securities (USA) LLC, MLV & Co. LLC
|
| Co-managers: | J.P. Morgan Securities LLC, BB&T Capital Markets, Janney Montgomery Scott LLC, U.S. Capital Advisors, Oppenheimer & Co. Wunderlich Securities Inc., Sterne Agee & Leach Inc., Drexel Hamilton LLC
|
| Dividend: | 7.75%
|
| Price: | Par of $25.00
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| Yield: | 7.75%
|
| Call options: | Conditional or upon change of control
|
| Pricing date: | Sept. 10
|
| Settlement date: | Sept. 15
|
| Security symbol: | Nasdaq: VNRCP
|
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