By Devika Patel
Knoxville, Tenn., July 22 - Copano Energy, LLC gave further details about a $300 million private placement of preferred units in an 8-K filed Thursday with the Securities and Exchange Commission. The units were sold to an affiliate of TPG Capital, a leading global private investment firm on July 21.
The company sold 10,327,022 series A preferred units at $29.05 per unit, a 10% premium.
The units are entitled to in-kind quarterly distributions of $0.72625 per unit for the first three years, and are convertible into common units on a 1 for 1 basis after July 21, 2013.
Copano intends to use the proceeds to fund its Eagle Ford Shale expansion strategy and other growth initiatives in Texas and Oklahoma.
In connection with the equity issuance, Copano has expanded its board of directors to eight members and has appointed Michael G. MacDougall, a TPG partner, as a director.
Bank of America Merrill Lynch was the agent.
Houston-based Copano Energy is a natural gas company with natural gas gathering, intrastate pipeline and natural gas processing assets in Oklahoma and Texas.
| Issuer: | Copano Energy, LLC
|
| Issue: | Series A preferred units
|
| Amount: | $300 million
|
| Units: | 10,327,022
|
| Price: | $29.05
|
| Conversion ratio: | 1 for 1
|
| Warrants: | No
|
| Agent: | BofA Merrill Lynch
|
| Settlement date: | July 21
|
| Stock symbol: | Nasdaq: CPNO
|
| Stock price: | $27.54 at close July 21
|
| Market capitalization: | $1.8 billion
|
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