SemGroup plans new credit facility linked to common units offering

By Sara Rosenberg

New York, March 9 - SemGroup Energy Partners LP is planning on getting a new five-year credit facility in connection with its initial public offering of 12.5 million common units, according to an S-1 filed with the Securities and Exchange Commission Friday.

Proceeds form the facility will be available for general partnership purposes, including working capital, capital expenditures, distributions and repayment of indebtedness that is assumed in connection with acquisitions.

The company plans to borrow $137.5 million under the credit facility prior to the closing of the common units offering and distribute the proceeds to SemGroup Holdings.

SemGroup is a Tulsa, Okla., provider of crude oil gathering, transportation, terminalling and storage services.

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