DCP Midstream LP priced its public offering of 6,000,000 of its 7.875% series B preferred units at $25 per unit, the proceeds of which will be used for general partnership purposes, including funding CapEx and repaying revolver debt.
The underwriters for the offering have a 30-day overallotment option to purchase up to an additional 900,000 units, according to a May 9 news release.
The net proceeds from the offering are expected to be about $143.9 million, excluding proceeds from the exercise of the overallotment option. The offering is set to close on May 11.
Distributions will be payable every quarter and will be cumulative from and including the original issue date to, but not including, June 15, 2023. After said date, distributions on the units will accumulate for each distribution period at a percentage of the liquidation preference equal to the three-month LIBOR plus a spread of 4.919%.
Merrill Lynch Pierce Fenner & Smith Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC are acting as joint book-running managers for the offering.