Inergy, L.P. (NASDAQ: NRGY) has announced an underwritten public offering of 4,000,000 common units. As a reminder, these are L.P. units rather than shares. The partnership intends to use the net proceeds to repay outstanding debt under its revolving working capital credit facility and its revolving acquisition credit facility. It noted that the amounts repaid may be reborrowed from time to time for acquisitions, growth capital, working capital, and general partnership purposes.
Wachovia, Barclays, Citi, and UBS are all listed as joint book-running managers. The L.P. will also grant the underwriters the option to purchase up to 600,000 additional common units to cover over-allotments.
This offering would represent roughly $88 million based upon an adjusted trading price before commissions and other discounts. The partnership’s market cap is about $1.2 billion.
Shares of the partnership closed up 1.4% at $23.31 in regular trading, but fell 5% to $22.09 in the after-hours session. Its 52-week trading range is $12.38 to $29.49.
JON C. OGG
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