Genesis Energy Public Offering

Written By Brianna Panzica

Posted March 23, 2012

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,


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