OKLAHOMA CITY, May 5, 2015 /PRNewswire/ -- New Source Energy Partners L.P., a Delaware limited partnership (NYSE: NSLP) (the "Partnership" or "New Source"), today announced the pricing of its public offering of 1,760,000 of its 11.00% Series A Cumulative Convertible Preferred Units ("Series A Preferred Units") at a price of $25.00 per unit. The Partnership has granted the underwriters a 30-day option to purchase up to an additional 264,000 Series A Preferred Units from the Partnership at the public offering price less the underwriting discount. Distributions will be payable on the Series A Preferred Units at an initial rate of 11.00% per annum of the stated liquidation preference of $25.00. The offering is expected to close on May 8, 2015, subject to customary closing conditions.
The Partnership expects to receive net proceeds of approximately $40.4 million (or approximately $46.6 million if the underwriters exercise their option to purchase an additional 264,000 Series A Preferred Units), after deducting underwriting discounts and estimated offering expenses, from the offering, and intends to use all of the net proceeds from the offering to repay a portion of the indebtedness outstanding under its revolving credit facility.
In accordance with the Consent Letter, dated April 8, 2015, relating to the Partnership's revolving credit facility, the Partnership may not declare and pay distributions on its common units unless it reduces total outstanding borrowings under its revolving credit facility to at least $55 million. Although the Partnership expects to receive net proceeds at the closing of the offering in a sufficient amount to reduce total outstanding borrowings to at least $55 million, it may not declare a distribution on its common units until such repayment occurs.
Stifel is serving as lead book-running manager and Baird is serving as joint book-running manager for the offering. Janney Montgomery Scott, Oppenheimer & Co. and Wunderlich are serving as co-leads for the offering. An investor may obtain a free copy of the prospectus supplement and accompanying base prospectus relating to the offering by visiting EDGAR on the SEC website at www.sec.gov. When available, a copy of the prospectus supplement and accompanying base prospectus relating to the offering may also be obtained from:
Stifel, Nicolaus & Company, Incorporated
Attn: Prospectus Department
One South Street, 15th Floor
Baltimore, MD 21202
Robert W. Baird & Co. Incorporated
Attn: Syndicate Department
777 East Wisconsin Avenue
Milwaukee, WI 53202
The shelf registration statement relating to these securities has previously been filed with the SEC and was declared effective on April 21, 2014. This press release does not constitute an offer to sell or a solicitation of an offer to buy Series A Preferred Units or any other securities, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering of these securities may be made only by means of the prospectus supplement and the related base prospectus.
About New Source Energy Partners L.P.
New Source Energy Partners L.P. is an independent energy partnership engaged in the production of its onshore oil and natural gas properties that extends across conventional resource reservoirs in east-central Oklahoma and in oilfield services that specialize in increasing efficiencies and safety in drilling and completion processes. For more information on the Partnership, please visit www.newsource.com.
This news release contains "forward-looking statements" within the meaning of federal securities laws. These statements express a belief, expectation or intention and are generally accompanied by words that convey projected future events or outcomes. We have based these forward-looking statements on our current expectation and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties, many of which are beyond our control. For a full discussion of these risks and uncertainties, please refer to the "Risk Factors" section of the Partnership's Annual Report on Form 10-K for the year ended December 31, 2014 and the information included in the Partnership's quarterly and current reports and other public filings. These forward-looking statements are based on and include the Partnership's expectations as of the date hereof. We undertake no obligation to update or revise any forward-looking statements except as may be required by applicable law.
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SOURCE New Source Energy Partners L.P.