Tallgrass Energy Partners LP (NYSE: TEP) priced its public offer of 7 million common units at $41.07 each, the company said July 22. The units represent limited partner interests, Tallgrass added.

Underwriters were granted a monthlong option to purchase up to 1.1 million additional units, Tallgrass said.

The net proceeds will support the potential acquisition of a 33.3% interest in Tallgrass Pony Express Pipeline LLC from a subsidiary of Tallgrass Development, the company said. Tallgrass Pony Express owns an oil pipeline that is scheduled to be in service in this year’s third-quarter, the company noted. Tallgrass Development is developing the pipeline, the company added.

Tallgrass also might use the proceeds to repay revolving credit facility borrowings and support general partnership purposes, the company added.

A definitive transaction agreement has not been carried out, and the proposed transaction will undergo final review, negotiations and approval by the general partners’ board of directors, and by the conflicts committee, Tallgrass said.

Morgan Stanley (NYSE: MS), Barclays Plc (NYSE: BCS), Citigroup Inc. (NYSE: C), Wells Fargo Securities LLC, RBC Capital Markets, Crédit Suisse (NYSE: CS), Deutsche Bank Securities Inc. and Goldman, Sachs & Co. (NYSE: GS) are joint book-running managers, the company said.

Leawood, Kan.-based Tallgrass Energy Partners LP owns, operates, acquires and develops midstream energy assets in North America.