Rose Rock pays down revolver via notes, uses borrowings for pipeline

By Marisa Wong

Madison, Wis., June 23 – Rose Rock Midstream LP said it intends to repay revolving borrowings using proceeds from a $350 million offering of senior notes due 2022.

Proceeds from the new notes will also be used for general partnership purposes.

Rose Rock also announced that it used $114.4 million of cash borrowings under its revolver to help fund its acquisition from SemGroup Corp. of the remaining one-third interest in SemCrude Pipeline, LLC. SemCrude Pipeline owns a 51% interest in White Cliffs Pipeline LLC, a pipeline system originating in Colorado and ending in Cushing, Okla.

The transaction was valued at $300 million and was also funded with $120 million from the issuance of common units to SemGroup and $61.9 million from the issuance of class A units to SemGroup.

Rose Rock was formed by SemGroup to own, operate, develop and acquire a portfolio of midstream energy assets. Rose Rock is based in Tulsa, Okla.

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