DALLAS, Texas - The upsized offering on July 8 of 3.5 million units of MarkWest Energy Partners LP (NYSE: MWE) was priced at $48.00, a 3.4 percent discount to the unit's July 7 close. The offering will be used to fund debt repayment.
Units of the natural-gas processor and distributor on July 8 closed down 2.76 percent at $48.30.
MarkWest disclosed plans to offer 3.2 million units late on July 7, adding itself to a growing list of companies tapping equity markets to pay down debt. In addition to repaying amounts under its revolving credit facility, MarkWest planned to use some proceeds for ongoing capital expenditures.
The Partnership has granted the underwriters a 30-day option to purchase a maximum of 525,000 additional common units to cover over-allotments, if any.
In the first quarter, MarkWest recorded a loss because of derivative effects and a loss from repaying debt, but revenue climbed at most of its units.