Eagle Rock Energy Partners, L.P. (EROC: Quote) announced the closing of its underwritten public offering of 10.12 million common units representing limited partner interests, which includes 1.3 million common units purchased pursuant to the full exercise of the underwriters' option to purchase additional common units to cover over-allotments.
The Partnership intends to use the approximately $84.5 million in net proceeds from the offering to fund a portion of the consideration for the proposed acquisition of two of BP America Production company's gas processing facilities in the Texas Panhandle and the associated gathering system.
Pending the application of the net proceeds to fund a portion of the consideration for the BP Acquisition, the Partnership intends to use the net proceeds to repay a portion of the outstanding borrowings under its credit facility.
The Partnership said that if the BP Acquisition is not consummated for any reason, it will use the net proceeds for general partnership purposes, including future acquisitions and capital program expenditures.
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by RTT Staff Writer
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