Resolute Energy Partners plans IPO |
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Published
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Fri, 28 Sep 2007 23:41
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NEW YORK (AP) - Oil and gas company Resolute Energy Partners L.P. said Friday it plans an initial public offering of 13.8 million common units, representing a 33 percent limited partner interest in the company, according to a regulatory filing.In a filing with the Securities and Exchange Commission, the Denver-based company said it expects proceeds of about $257.1 million, assuming an offering price of $20 per unit.The underwriters have been granted the option to buy up to an additional 2,062,500 common units to cover any overallotments.Resolute Energy plans to use the proceeds to repay all of the debt outstanding, or $173.9 million, under its existing revolving credit facility and repay $72.3 million outstanding under its term loan facility. The remainder of the proceeds will be used to pay expenses associated with the offering and for working capital.The company also intends to borrow about $152.7 million under a new revolving credit facility upon closing of the offering. Proceeds from the credit facility will be used to repay the remaining balance on the company's existing term loan facility.Resolute Energy plans to make minimum quarterly cash distributions of 35 cents per unit, or $1.40 per unit per year.Resolute Energy is a master limited partnership focusing on the exploitation and development of oil and gas properties in the Paradox Basin in southeast Utah. Most of the company's revenue is generated by its oil reserves, according to the filing.For the six months ended June 30, the company reported a loss of $31.4 million on revenue of $60.3 million.Lehman Brothers, UBS Investment Bank and Wachovia Securities are listed as the underwriters of the offering.Resolute plans to list its shares on the New York Stock Exchange under the symbol 'REN.'Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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