New Issue: Copano Energy to sell $175 million of stock to help fund ScissorTail purchase

New York, June 20 - Copano Energy, LLC said it has agreements for a $175 million private placement of equity to help fund its acquisition of ScissorTail Energy, LLC for $500 million.

The company will sell $55 million of common units and $120 million class B units.

The class B units are a new series that will pay a quarterly distribution of 110% of that paid on the common units. They have no voting rights other than those required by law and are subordinated to the common units on dissolution and liquidation.

They can be converted into common units if the conversion is approved by a vote of unitholders. Copano said it has agreed to hold a special meeting of unitholders to consider that proposal as soon as feasible after the closing of its acquisition of ScissorTail.

The investors in the private placement are Kayne Anderson MLP Investment Co., the Principal Strategies Group of Goldman, Sachs & Co., two funds managed by Tortoise Capital Advisors, LLC, two closed-end funds sub-advised by Fiduciary Asset Management, Alerian Capital Management, LLC, RCH Energy MLP Fund and two funds managed by Strome Investment Management, LP.

Copano is a Houston-based midstream natural gas company. Tulsa, Okla.-based ScissorTail provides natural gas midstream services in central and eastern Oklahoma.

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