LRR Energy prices offering of 6M units at $16.84
LRR Energy prices offering of 6 million units at $16.84 each, proceeds to pay down debt
HOUSTON (AP) -- LRR Energy LP on Tuesday priced its underwritten public offering of 6 million common units at $16.84 per unit.
The price represents a 4 percent discount to the Houston-based partnership's Monday closing unit price of $17.50. LRR Energy units fell 73 cents, or 4.2 percent, to $16.77 on the news.
A total of 3 million common units are being offered by LRR Energy and another 3 million by the company's sponsor, Lime Rock Resources. The offering's underwriters — Raymond James, Barclays and UBS Investment Bank — have been granted a 30-day option to buy up to 700,000 additional units from LRR Energy and up to 200,000 additional units from Lime Rock.
The offering is set to close Friday.
LRR Energy plans to use the proceeds to pay down debt. The partnership will not receive any proceeds from Lime Rock's sale of units.
