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Published on 11/5/2012 in the Prospect News PIPE Daily.

Inergy Midstream plans $225 million placement of common units

Deal sells common units at $21.00 to finance acquisition of Rangeland

By Devika Patel

Knoxville, Tenn., Nov. 5 - Inergy Midstream LP arranged a $225 million private placement of common units on Nov. 3, according to an 8-K filed Monday with the Securities and Exchange Commission. Jefferies & Co., Inc. was the company's financial advisor.

The company will sell 10,714,283 common units at $21.00 per unit. The price per unit is a 9.09% discount to the Nov. 2 closing share price of $23.10.

Settlement is expected in early December.

Proceeds will be used for a portion of the cash purchase price for the company's planned acquisition of Rangeland Energy, LLC, the owner and operator of the COLT crude oil rail terminal, storage and pipeline facilities, for $425 million. The company also has arranged a committed unsecured debt financing to finance the balance of the acquisition price.

Inergy Midstream, based in Kansas City, Mo., develops and operates natural gas and NGL storage and transportation assets.

Issuer:Inergy Midstream LP
Issue:Common units
Amount:$225 million
Units:10,714,283
Price:$21.00
Warrants:No
Pricing date:Nov. 3
Stock symbol:NYSE: NRGM
Stock price:$23.10 at close Nov. 2
Market capitalization:$1.76 billion

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