Azure Midstream Partners LP opened a public offering of 3.5 million common units representing limited partner interests, the company said June 16.
Underwriters were granted a monthlong option to purchase 525,000 additional units.
Net proceeds will repay some of the outstanding revolving credit facility borrowings. These may be reborrowed to fund the capital program, acquisitions and general partnership purposes.
Additional midstream assets will be available for acquisition during the second half of this year. Azure Midstream Energy LLC advised Azure Midstream Partners that it had right of first offer, the company added. These assets might include portions of Azure Midstream Energy's Holly or Center systems, covering about 439,000 acres. These systems provide natural gas gathering, compression, treating and processing services in North Louisiana and East Texas in the Haynesville and Bossier shales and the Cotton Valley Formation.
Azure Midstream Energy has not finalized which assets it will offer, nor any offering terms.
BofA Merrill Lynch, J.P. Morgan, RBC Capital Markets and Wells Fargo Securities LLC are joint book-running managers. Baird, Stifel, Janney Montgomery Scott and Oppenheimer & Co. are co-managers.
Azure Midstream Partners LP is an MLP based in Dallas.
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