DCP Midstream Announces Pricing of 7.95% Series C Preferred Units
October 02 2018 - 3:49PM
DCP Midstream, LP (NYSE: DCP) (“DCP”) announced today that it has
priced an underwritten public offering of 4,000,000 of its 7.95%
Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual
Preferred Units (the “Series C Preferred Units”) at a price of
$25.00 per unit. DCP also granted the underwriters a 30-day option
to purchase up to 600,000 additional Series C Preferred
Units. Distributions on the Series C Preferred Units will be
payable quarterly in arrears and are cumulative from and including
the original issue date to, but not including, October 15, 2023 at
a fixed rate equal to 7.95% per annum of the stated liquidation
preference of $25.00 per unit. On and after October 15, 2023,
distributions on the Series C Preferred Units will accumulate for
each distribution period at a percentage of the liquidation
preference equal to the three-month LIBOR plus a spread of 4.882%.
The offering is expected to close on October 4, 2018, subject to
the satisfaction of customary closing conditions.
DCP expects to receive net proceeds from the
offering of approximately $96.1 million after deducting
underwriting discounts and estimated offering expenses (excluding
any proceeds from the exercise of the over-allotment option), and
intends to use the net proceeds, including the proceeds from any
exercise of the over-allotment option, for general partnership
purposes, including the funding of capital expenditures and the
repayment of outstanding indebtedness under its revolving credit
facility.
RBC Capital Markets, LLC, Merrill Lynch, Pierce,
Fenner & Smith Incorporated, J.P. Morgan Securities LLC and
Wells Fargo Securities, LLC are acting as joint book-running
managers for the offering. When available, a copy of the prospectus
supplement and accompanying base prospectus relating to this
offering may be obtained free of charge on the Securities and
Exchange Commission's website at www.sec.gov or from any of the
underwriters by contacting:
RBC Capital Markets, LLC Attn: DCM Transaction Management 200
Vesey Street New York, New York 10281 Telephone: (866)
375-6829
Merrill Lynch, Pierce, Fenner & Smith
Incorporated 200 North College Street NC1-004-03-43 Charlotte, NC
28255-0001 Attention: Prospectus Department Telephone:
1-800-294-1322 Email: dg.prospectus_requests@baml.com
J.P. Morgan Securities LLC 383 Madison Avenue New York, New York
10179 Attention: Investment Grade Syndicate Desk, 3rd Floor
Telephone: 212-834-4533
Wells Fargo Securities, LLC 608 2nd Avenue South, Suite 1000
Minneapolis, Minnesota 55402 Attention: WFS Customer Service
Telephone: 800-645-3751
The Series C Preferred Units are being offered
and will be sold pursuant to an effective shelf registration
statement on Form S-3 that was previously filed with
the Securities and Exchange Commission. This press
release does not constitute an offer to sell or the solicitation of
an offer to buy the securities described herein, nor shall there be
any sale of these securities in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction. This offering of Series C Preferred Units is
being made only by means of a base prospectus and related
prospectus supplement meeting the requirements of Section 10 of the
Securities Act of 1933, as amended.
DCP Midstream, LP (NYSE: DCP) is a midstream
master limited partnership headquartered in Denver, Colorado, with
a diversified portfolio of gathering and processing assets in
addition to logistics and marketing assets. DCP is one of the
largest natural gas liquids producers and marketers and one of the
largest natural gas processors in the U.S. The owner of DCP’s
general partner is a joint venture between Enbridge and Phillips
66.
This press release may include forward-looking
statements as defined under the federal securities laws regarding
DCP Midstream, LP, including statements regarding the intended use
of offering proceeds, closing date and other aspects of the Series
C Preferred Unit offering. Although management believes that
expectations reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations will
prove to be correct. In addition, these statements are subject to
certain risks, uncertainties and other assumptions that are
difficult to predict and may be beyond DCP's control, including
market conditions, customary offering closing conditions and other
factors described in the prospectus and accompanying prospectus
supplement for the offering. If one or more of these risks or
uncertainties materialize, or if underlying assumptions prove
incorrect, DCP's actual results may vary materially from what
management anticipated, estimated, projected or expected.
Investors are encouraged to closely consider the
disclosures and risk factors contained in DCP’s annual and
quarterly reports filed from time to time with the Securities and
Exchange Commission and in the prospectus and related prospectus
supplement for the Series C Preferred Units. The statements
herein speak only as of the date of this press release. DCP
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable
securities laws.
DCP Investor Relations
Irene Lofland(303)
605-1822
Source: DCP Midstream, LP
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