EV Energy Partners Announces Issuance of $120 Million of Additional Equity Securities
EV Energy Partners, L.P. (Nasdaq:EVEP) today announced the issuance and sale of $120 million of additional equity securities. EVEP has issued 3,408,696 common units for $117.6 million to a group of institutional investors led by Zimmer Lucas Partners, LLC, co-led by Lehman Brothers MLP Opportunity Fund L.P. and Swank Capital LLC and including Alerian Capital Management LLC, funds managed by Fiduciary Asset Management, LLC, GPS Partners LLC, Hartz Capital MLP, LLC and Tortoise Capital Resources Corporation. In addition, EVEP’s general partner made its proportional capital contribution of $2.4 million.
The net price for the common units was $34.50 per unit, which represents a 6 percent discount to the volume weighted average price of the common units for the trailing 10-trading-day period through May 31, 2007.
Proceeds from this private placement will be used to repay all of the Company’s borrowings under its revolving credit facility, which borrowings were used to finance the previously completed acquisition of Monroe field properties in Louisiana in March 2007, and to fund approximately $25 million of the purchase price of its $100 million Central/East Texas acquisition, which is expected to close within the next five weeks.
“This transaction allows EV Energy Partners to repay our outstanding indebtedness and fund a part of our Central/East Texas acquisition. Going forward EV Energy Partners will have a significant amount of financing capacity to continue to capitalize on future growth opportunities while, consistent with our stated strategy, maintaining a healthy balance sheet,” said John Walker, Chairman and CEO.
EV Energy Partners, L.P., is a master limited partnership engaged in acquiring, producing and developing oil and gas properties.
Related Articles