Copano to sell common and class B units at discount in $175 million private placement

By Sheri Kasprzak

Atlanta, June 24 - Copano Energy, LLC said Friday the common and class B units it plans to sell in its recently announced $175 million private placement will be sold at a discount.

The company plans to raise $55 million in common units and $120 million in class B units.

The common units will be sold at a 2% discount to the company's 10-day average closing price ended June 15 and the class B units will be sold at a 4.5% discount to the 10-day average closing price for the company's stock ended June 15.

The deal was first announced June 20 and the proceeds will be used to partially fund its $500 million acquisition of ScissorTail Energy, LLC.

The class B units are a new series that will pay a quarterly distribution of 110% of that paid by the common units. The class B units may be converted into common units upon approval of the unit holders.

The investors in the private placement include 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.

On Friday, Copano's stock closed up $0.34 at $35.59.

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