Friday, March 27, 2009

Buckeye Partners units lose $2.03 per share as new offering issued

EMMAUS, Pa. - Buckeye Partners, L.P. (NYSE: BPL) on March 26 announced that it has increased its previously announced public offering of 2,350,000 limited partnership units to 2,600,000 limited partnership units and has priced the offering at $36.25 per unit.
Buckeye units closed on March 26 at $35.90 a unit, down $2.03 from the prior day and 35 cents under the unit price of the new offering, which diluted the value of units existing before the new offering.
Buckeye offered the underwriters of the offering an option to purchase up to 390,000 additional limited partnership units at a bargain price.
Buckeye intends to use the net proceeds from the offering to reduce indebtedness outstanding under its revolving credit facility.
Barclays Capital, Citi, J.P. Morgan, and Wachovia Securities acted as joint book-running managers of the limited partnership unit offering. Deutsche Bank Securities was the co-manager of the offering.
The general partner of Buckeye Partners, L.P. is owned by Buckeye GP Holdings L.P. (NYSE: BGH).
Buckeye shares were heavily traded on the day of the new offering, with 1,783,490 units changing hands.
Buckeye limited partner units are currently paying an annual dividend of $3.55 per share. At the March 26 closing price of $35.90 a share, Buckeye common units were paying a yield of 9.88 percent. With the new float, 48.8 million common units are outstanding.

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