Atlas Pipeline Partners L.P. (APL) said Wednesday it has priced an underwritten public offering of 10.3 million common units representing limited partner interests at an offering price of $34.00 per unit.
The underwriters have been granted a 30-day option to purchase up to an additional 1.545 million common units.
Atlas Pipeline said it plans to use the net proceeds from the offering to fund a portion of its acquisition of TEAK Midstream L.L.C., a private midstream operator.
Prior to funding the pending acquisition, Atlas Pipeline may use some or all of the net proceeds for general purposes, including repayment of debts.
Citigroup, BofA Merrill Lynch, Deutsche Bank Securities, J.P. Morgan, Morgan Stanley, and Wells Fargo Securities are acting as joint book-running managers for the offering.
On Tuesday, Atlas Pipeline agreed to acquire Teak Midstream for $1 billion in cash.
Teak is a natural gas gathering and processing company with assets located in the core of the Eagle Ford Shale in South Texas. Atlas Pipeline said the deal will provide it with "an ideal entry point" in that region. Atlas Pipeline's acquisition is typical of the lure that the Eagle Ford shale holds for energy companies. The deal is expected to close in the second quarter of 2013.
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