DCP Midstream LP completed an underwritten public offering of 4,000,000 of its 7.95% series C fixed-to-floating rate cumulative redeemable preferred units at $25.00 apiece, which yielded net proceeds of about $96.1 million.
The partnership plans to use net proceeds from the offering for general partnership purposes such as funding CapEx and repaying revolver debt, according to an Oct. 4 SEC filing.
DCP previously said it plans to pay distribution on the preferred units quarterly in arrears, cumulative from and including the original issue date to, but not including, Oct. 15, 2023, at fixed rate equal to 7.95% per annum of the per-unit purchase price, or about $1.9875 per unit per annum. On and after Oct. 15, 2023, distributions on the preferred units will accumulate for each distribution period at a percentage of the liquidation preference equal to the three-month London interbank offered rate plus a spread of 4.882%.
RBC Capital Markets LLC, Merrill Lynch Pierce Fenner & Smith Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC acted as joint book-running managers for the offering.