Boardwalk Pipeline Partners LP (NYSE: BWP) announced that it has priced the public offering of 10,000,000 common units at $26.99 per unit. The partnership expects the offering to close on Oct. 10, 2012. The partnership has granted the underwriters a 30-day option to purchase up to an additional 1,500,000 common units.
In connection with this offering, the partnership will receive net proceeds after offering expenses of approximately $266.1 million, including the general partner's proportionate capital contribution of $5.5 million to maintain its 2% general partner interest.
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 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 Acquisition Company LLC, a joint venture between the partnership and Boardwalk Pipelines Holding Corp.
Barclays, Citigroup, Deutsche Bank Securities, J.P. Morgan, Morgan Stanley, RBC Capital Markets, UBS Investment Bank and Wells Fargo Securities are acting as joint book-running managers for the common unit offering.