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Sanchez Production Partners prices public offering at $11/unit

Published 11/17/2016, 08:49 AM
Sanchez Production Partners prices public offering at $11/unit
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  • Sanchez Production Partners (NYSE:SPP) -16% premarket after pricing its previously announced public offering of more than 6.55M common units plus a separate, concurrent private placement of 2.27M units to Sanchez Energy (NYSE:SN) at $11/unit.
  • SPP plans to use the proceeds, together with $28M in borrowings, toward an $80M purchase of a 50% equity interest in Carnero Processing from SN and $24.9M for certain wellbores and escalating working interests and other production assets that it intends to acquire from SN; it will use $25M from the private placement to repay borrowings outstanding under its credit facility.


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