QEP Midstream Reports Closing of Option to Buy Added Common Units in Full, Sees Proceeds $58.9M
QEP Midstream Partners, LP (NYSE: QEPM) today announced that the underwriters of its recently completed initial public offering have purchased an additional 3,000,000 common units, representing limited partner interests in the Partnership, at a price to the public of $21.00 per common unit, pursuant to the exercise of the option to purchase up to an additional 3,000,000 common units granted to the underwriters. QEPM's initial public offering of 20,000,000 common units closed on August 14, 2013. The common units trade on the New York Stock Exchange under the ticker symbol "QEPM."
Net proceeds received by the Partnership from the sale of the additional common units were approximately $58.9 million in the aggregate, after deducting underwriting discounts and commissions and expenses. The Partnership used the net proceeds of approximately $58.9 million to redeem 3,000,000 common units held by an affiliate of QEP Resources, Inc. ("QEP"). The public now owns an approximate 42.2% limited partner interest in the Partnership. QEP, through certain of its subsidiaries, holds, a 2.0% general partner interest, all of the Partnership's incentive distribution rights and an approximate 55.8% limited partner interest in the Partnership.
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