Tallgrass Energy Partners Announces Follow-On Public Offering of Common Units
July 21 2014 - 3:25PM
Business Wire
Tallgrass Energy Partners, LP (NYSE: TEP) (“TEP” or the
“Partnership”) announced today the commencement, subject to market
conditions, of an underwritten public offering of 7,000,000 common
units representing limited partner interests. The Partnership also
intends to grant the underwriters a 30-day option to purchase up to
an additional 1,050,000 common units.
TEP intends to use the net proceeds from the offering to fund a
portion of the consideration for the potential acquisition from a
subsidiary of Tallgrass Development of a 33.3% interest in
Tallgrass Pony Express Pipeline, LLC (“Pony Express”), which owns
an oil pipeline being developed by Tallgrass Development that is
expected to be placed in service during the third quarter of 2014.
No definitive transaction agreement for the potential acquisition
of an interest in Pony Express has been executed at this time and
the proposed transaction remains subject to final review,
negotiations and approval by the conflicts committee and the board
of directors of TEP’s general partner. Pending the use of proceeds
for such purpose, TEP intends to use the net proceeds of the
offering to repay borrowings under TEP’s revolving credit facility
with any excess to be used for general partnership purposes.
Morgan Stanley, Barclays, Citigroup, Wells Fargo Securities, RBC
Capital Markets, Credit Suisse, Deutsche Bank Securities and
Goldman, Sachs & Co. are acting as the joint book-running
managers for the offering. When available, copies of the
preliminary prospectus supplement, prospectus supplement, and
accompanying base prospectus relating to the offering may be
obtained free of charge on the Securities and Exchange Commission's
website at www.sec.gov or from the underwriters of the offering as
follows:
Morgan Stanley & Co. LLC
Barclays Capital
Inc. 180 Varick Street,
2nd Floor c/o Broadridge Financial Solutions New York, NY 10014
1155 Long Island Avenue Attn: Prospectus Department Edgewood, NY
11717
barclaysprospectus@broadridge.com
The common units will be offered and sold pursuant to an
effective shelf registration statement previously filed with the
Securities and Exchange Commission. This press release does 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. The offering is being 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.
About Tallgrass Energy Partners,
LP
Tallgrass Energy Partners, LP (NYSE: TEP) is a publicly traded,
growth-oriented limited partnership formed to own, operate, acquire
and develop midstream energy assets in North America. We currently
provide natural gas transportation and storage services for
customers in the Rocky Mountain and Midwest regions of the United
States through our Tallgrass Interstate Gas Transmission and
Trailblazer Pipeline systems and provide processing services for
customers in Wyoming through our Casper and Douglas natural gas
processing and West Frenchie Draw natural gas treating facilities.
We believe we are well-positioned to capture growing natural gas
volumes produced in the Denver-Julesburg Basin and the Niobrara and
Mississippi Lime shale formations.
Cautionary Note Concerning
Forward-Looking Statements
Disclosures in this press release contain “forward-looking
statements.” All statements, other than statements of historical
facts, included in this press release that address activities,
events or developments that management expects, believes or
anticipates will or may occur in the future are forward-looking
statements. Without limiting the generality of the foregoing,
forward-looking statements contained in this press release
specifically include the expectations of plans, strategies,
objectives and growth of the Partnership and its subsidiaries,
including guidance regarding the number of units to be sold in the
offering, the Partnership’s expected use of proceeds from the
offering, and the possibility that the Partnership may acquire an
interest in Pony Express. These statements are based on certain
assumptions made by Tallgrass Energy Partners based on management’s
experience and perception of historical trends, current conditions,
anticipated future developments and other factors believed to be
appropriate. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of Tallgrass Energy Partners, which may cause actual
results to differ materially from those implied or expressed by the
forward-looking statements. These include risks relating to
Tallgrass Energy Partners’ financial performance and results,
availability of sufficient cash flow to pay distributions and
execute its business plan, the demand for natural gas storage and
transportation services, operating hazards, the effects of
government regulation, tax position and other risks incidental to
transporting, storing and processing natural gas and other
important factors that could cause actual results to differ
materially from those projected, including those set forth in
reports filed by Tallgrass Energy Partners with the Securities and
Exchange Commission. Any forward-looking statement applies only as
of the date on which such statement is made and Tallgrass Energy
Partners does not intend to correct or update any forward-looking
statement, whether as a result of new information, future events or
otherwise, except as required by law.
Tallgrass Energy Partners, LPNate Lien, 913-928-6012Investor
Relationsinvestor.relations@tallgrassenergylp.com
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