Genesis Energy, L.P. (NYSE: GEL), an oil and gas company based in Houston, Texas, announced a public offering on Friday of 5 million units, priced at $30.80 per unit.
The company is looking to raise money to help pay its debts and for company operations. It should raise $154 million before expenses in this offering.
The company is also offering an option to underwriters to buy 750,000 units in 30 days, raising an additional $23.1 million should the underwriters accept.
The offer occurred at a 3.6% discount from closing prices of $31.96 on Thursday.
Genesis owns a number of pipelines with the capability to transport 900,000 barrels per day.
Earlier this year, it purchased a stake worth $205.9 million in pipelines in the Gulf of Mexico.
It also owns 28% of the Poseidon Oil Pipeline Co, 29% of Odyssey Pipeline, and 23% in Eugene Island Pipeline System.
And Genesis is working with Enterprise Products Partners (NYSE: EPD) on the construction of a pipeline in the Gulf, which will be used by companies like Exxon Mobile (NYSE: XOM).
Genesis’ 5 million unit offering will close on March 28.
Book-running managers include Wells Fargo Securities, Bank of American Merrill Lynch, Citigroup, RBC Capital Markets, and UBS Investment Bank.
Co-managers are Baird, Global Hunter Securities, BMO Capital Markets, Janney Montgomery Scott, and Morgan Keegan, with Deutsche Bank Securities as the senior co-manager.
Genesis was down 3.35% in afternoon trading to $30.89 on Friday.
That’s all for now,