Legacy Reserves LP Announces Pricing of Series B Preferred Units
June 10 2014 - 4:36PM
Legacy Reserves LP (Nasdaq:LGCY) ("Legacy") today announced the
pricing of its public offering of 7,000,000 8.00% Series
B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred
Units ("Series B Preferred Units") at a price of $25.00 per unit.
The underwriters have been granted a 30-day option to purchase up
to an additional 1,050,000 Series B Preferred Units from Legacy at
the public offering price less the underwriting discount.
Distributions on the Series B Preferred Units will be payable at a
rate of 8.00% per annum of the stated liquidation preference of
$25.00 from the date of issuance up to (but excluding) June 15,
2024, and from (and including) that date at a floating rate equal
to three-month LIBOR plus a spread of 5.256% per annum. The
offering is scheduled to close on June 17, 2014.
Legacy expects to receive net proceeds of approximately
$169,187,500 (or approximately $194,610,625 if the underwriters
exercise their option in full to purchase an
additional 1,050,000 Series B Preferred Units), after
deducting underwriting discounts and estimated offering expenses,
from the offering. Legacy intends to use the net proceeds of this
offering reduce outstanding borrowings under its revolving credit
facility and for general partnership purposes.
UBS Securities LLC, Morgan Stanley & Co. LLC, Stifel,
Nicolaus & Company, Incorporated and MLV & Co. LLC are
acting as joint book-running managers of the offering. Janney
Montgomery Scott LLC is acting as senior co-manager. Barclays
Capital Inc., J.P. Morgan Securities LLC, Ladenburg Thalmann &
Co. Inc. and Oppenheimer & Co. Inc. are acting as co-managers
of the offering. The offering may be made only by means of a
prospectus and related prospectus supplement meeting the
requirements of Section 10 of the Securities Act of 1933, as
amended. A copy of the preliminary prospectus supplement and
accompanying base prospectus meeting such requirements relating to
this offering may be obtained from any of the underwriters,
including the offices of:
UBS Securities LLC |
Attn: Prospectus Department |
299 Park Avenue |
New York, NY 10171 |
Phone: 877-827-6444, ext. 561-3884 |
|
Morgan Stanley & Co. LLC |
Attn: Prospectus Department |
180 Varick Street, 2nd Floor |
New York, NY 10014 |
|
Stifel, Nicolaus & Company,
Incorporated |
Attn: Syndicate Department |
One South Street, 15th Floor |
Baltimore, MD 21202 |
Phone: (855) 300-7136 |
|
MLV & Co. LLC |
Attn: Randy Billhardt |
1251 Avenue of the Americas, 41st Floor |
New York, NY 10020 |
Phone: (212) 542-5882 |
You may also obtain these documents for free when
they are available by visiting the Securities and Exchange
Commission's Web site at www.sec.gov.
The shelf registration statement relating to these
securities has previously been filed with the Securities and
Exchange Commission and automatically deemed effective. This press
release shall not constitute an offer to sell or the solicitation
of an offer to buy the securities described herein, nor shall there
be any sale of these securities in any state or jurisdiction in
which such an offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any
such state or jurisdiction.
This press release includes forward-looking
statements regarding future events. These forward-looking
statements rely on a number of assumptions concerning future events
and are subject to a number of uncertainties and factors, many of
which are outside the control of Legacy, and a variety of risks
that could cause results to differ materially from those expected
by the management of Legacy. Legacy undertakes no obligation to
update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to
future operating results over time.
CONTACT: Legacy Reserves LP
Dan Westcott, Executive Vice President and
Chief Financial Officer
432-689-5200
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