Series D convertible preferred units will fund $1 billion acquisition
By Devika Patel
Knoxville, Tenn., May 8 - Atlas Pipeline Partners LP settled a $400 million private placement of its class D convertible preferred units on May 7, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal was announced April 16.
The company sold 13,445,383 units at $29.75 per unit. The price per unit is an 18.04% discount to the May 6 closing share price of $36.30.
Each unit is convertible into common limited partner units on a one-to-one basis after one year, and mandatorily convertible after eight calendar quarters.
Proceeds will be used to acquire 100% of the equity interests of TEAK Midstream, LLC for $1 billion in cash. The transaction is expected to close in the second quarter of 2013.
Based in Moon Township, Pa., Atlas Pipeline Partners is a midstream energy services provider.
| Issuer: | Atlas Pipeline Partners LP
|
| Issue: | Class D convertible preferred units
|
| Amount: | $400 million
|
| Units: | 13,445,383
|
| Price: | $29.75
|
| Conversion ratio: | Into one common limited partner unit (per preferred unit)
|
| Warrants: | No
|
| Announcement date: | April 16
|
| Settlement date: | May 7
|
| Stock symbol: | NYSE: APL
|
| Stock price: | $36.30 at close May 6
|
| Market capitalization: | $2.38 billion
|
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