Boardwalk Announces Exercise of Option by Underwriters to Purchase Additional Common Units
Boardwalk Pipeline Partners, LP (NYSE: BWP) today announced that the underwriters of its previously announced public offering of 8,000,000 common units, which closed on January 25, 2012, have exercised their option to purchase an additional 1,200,000 common units. The Partnership expects the purchase of additional common units to close on February 9, 2012.
The total net proceeds from the offering of 9,200,000 common units, after deducting offering expenses, will be approximately $250.2 million in the aggregate, including the general partner's proportionate capital contribution of approximately $5.2 million.
The Partnership expects to use the net proceeds from the offering, together with amounts to be contributed by its general partner to maintain its 2% general partner interest, to repay borrowings outstanding under the Partnership's revolving credit facility, but the Partnership may use some or all of the proceeds for other general partnership purposes, which may include acquiring additional equity interests in Boardwalk HP Storage Company, LLC, a joint venture between the Partnership and Boardwalk Pipelines Holding Corp., an affiliate of the Partnership's general partner.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.