Rice Energy Inc. (NYSE: RICE) announced Dec. 17 the pricing of Rice Midstream Partners LP's IPO of 25 million common units at $16.50 per common unit.

Rice Midstream has granted the underwriters a 30-day option to purchase up to roughly 3.8 million additional common units. The units are expected to begin trading on the New York Stock Exchange on Dec. 17 under the symbol "RMP." The offering is expected to close on Dec. 22.

Upon conclusion of the offering, the public will own an approximate 43.5% limited partner interest in Rice Midstream or about 50% if the underwriters exercise in full their option to purchase additional common units. Rice Energy and its affiliates will own the remaining 56.5% limited partner interest in Rice Midstream or about 50% if the underwriters exercise in full their option to purchase additional common units.

Rice Energy, based in Canonsburg, Pa., will own the general partner of Rice Midstream and all of its incentive distribution rights.

Net proceeds will be about $383.7 million or about $441.6 million if the underwriters exercise in full their option to purchase additional units.

Rice Midstream will use the proceeds to make a distribution to Rice Energy, including a reimbursement for capital expenditures incurred on Rice Midstream's behalf, to fund $25 million of Rice Midstream's 2015 expansion capital expenditures and to pay about $2.7 million of origination fees related to Rice Midstream's new revolving credit facility.

Barclays, Citigroup, Wells Fargo Securities, Goldman, Sachs & Co. and RBC Capital Markets are joint book-running managers.