Vanguard Natural Resources LLC (NasdaqGS: VNR) priced a public offering of 7 million Series B cumulative, redeemable perpetual preferred units, the company said March 5. The units stand at 7.625% and are $25 each, the company added.

A monthlong underwriters’ option, to purchase up to 1,050,000 additional units was granted, Vanguard Natural Resources noted.

Net proceeds of roughly $194.7 million are expected including the underwriters’ option, while $169.2 million in proceeds are expected without it, the company said.

Vanguard Natural Resources will use proceeds to repay part of its debt under the senior secured revolving credit facility, the company said..

The offer is scheduled to close March 11, the company said.

Morgan Stanley, UBS Investment Bank, Barclays Plc (NYSE: BCS), Stifel Financial Corp. (NYSE: SF) Credit Suisse (NYSE: C) and MLV & Co. are the offering’s joint book-running managers, the company said.

Houston-based Vanguard Natural Resources LLC acquires, produces and develops oil and natural gas properties throughout the U.S.