Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers S > Headlines for SemGroup Corp. > News item |
SemGroup to pay down some term loans with Rose Rock IPO proceeds
By Susanna Moon
Chicago, Dec. 9 - SemGroup Corp. plans to repay some of its $181 million of term loans with proceeds from an initial public offering of units by its newly formed company Rose Rock Midstream, LP, according to a 424B1 filing with the Securities and Exchange Commission.
Rose Rock will issue $140 million of units, and SemGroup will use all of the proceeds to repay some of the terms loans.
The term loan A matures on June 20, 2016 and has an interest rate of 3.74% as of Sept. 30. The term loan B matures on June 20, 2018 and has an interest rate of 5.75%.
The cash distribution to SemGroup made with the proceeds of the offering will be made in consideration of its contribution of all of the partnership interests in SemCrude, LP, which owns all of Rose Rock's initial assets, to Rose Rock, the filing noted.
Rose Rock is a growth-oriented Delaware limited partnership recently formed by SemGroup to own, operate, develop and acquire a diversified portfolio of midstream energy assets.
SemGroup is a Tulsa, Okla.-based midstream service company.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.