TEPPCO's Multi-Year Lows on Increased Offering (TPP)
TEPPCO Partners, L.P. (NYSE:TPP) is under a bit of pressure after the energy logistics company has priced a secondary offering of 8,000,000 units. Last night this was listed as a pricing of 7.1 million units, but that number has been increased this morning. As far as a use of funds, TEPPCO intends to use the net proceeds from these sales of units to reduce debt under its revolving credit facility, and it expects to use some of the increased availability under the facility to finance capital expenditures and other growth projects.
TEPPCO also agreed to sell approximately 240,000 additional units atthe same public offering price to TEPPCO Unit L.P., an affiliate ofEPCO, Inc. EPCO, Inc., along with TEPPCO, is under the common controlof Dan L. Duncan.
Lehman Brothers, UBS, and Wachovia are listed as the joint book-runningmanagers for the offering. TEPPCO has granted the underwriters anoption to purchase up to an additional 1,200,000 units to coverover-allotments.
Shares are down 3.8% at $28.88 right before the open. Its 52-week trading range was $29.89 to $40.81.
Jon C. Ogg
September 4, 2008