Now that Crestwood Midstream Partners LP (NYSE: CMLP) has announced it is buying Arrow Midstream Holdings LLC for $750 million, it’s time to find the cash.

Crestwood said Oct. 17 that it has commenced an underwritten public offering of 14 million common units representing limited partner interests. Crestwood expects to grant the underwriters a 30-day option to purchase a maximum of 2.1 million additional common units. A unit is akin to a share.

Net proceeds from the offering will be used to fund a portion of the consideration for Crestwood's pending acquisition of Arrow and related transaction costs and expenses. Arrow owns and operates substantial crude oil, natural gas and water gathering systems located on the Fort Berthold Indian Reservation in the core of the Bakken in McKenzie and Dunn counties, North Dakota.

Crestwood's issuance of common units in the equity offering, including any common units issued in connection with the underwriter's option, together with the issuance of 8.8 million common units to the sellers, represents the aggregate amount of equity Crestwood expects to issue in connection with the Arrow acquisition.

In the event the acquisition does not close, Crestwood intends to use the net proceeds from the offering to repay borrowings under its revolving credit facility and for general partnership purposes.

Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. are underwriters.

Crestwood Midstream Partners LP primarily engages in the gathering, processing, treating, compressing, transporting, and selling natural gas in the U.S. The company is headquartered in Houston.