CrossAmerica Partners LP has priced its previously-announced public offering, which is expected to close on June 19.
The public offering of 4.6 million common units represents limited partner interests in the partnership at a price to the public of $31.45 per common unit. The offering is subject to customary closing conditions.
The partnership has granted the underwriters a 30-day option to purchase up to an additional 690,000 common units. The partnership expects to receive net proceeds of approximately $138.6 million (or approximately $159.4 million if the underwriters exercise their option to purchase an additional 690,000 common units in full), after deducting underwriting discounts and commissions and estimated offering expenses.
The partnership intends to use the net proceeds from the offering, including any proceeds received from an exercise of the underwriters’ option to purchase additional common units, to reduce indebtedness outstanding under its credit facility. The partnership then intends to reborrow under its credit facility to fund future acquisitions.
The news comes after, earlier this week, CST Brands Inc. and CrossAmerica Partners LP announced two dropdown transactions totaling approximately $261.5 million.
BofA Merrill Lynch, Barclays, J.P. Morgan, Raymond James and RBC Capital Markets are acting as joint book-running managers for the Offering, and Baird, Janney Montgomery Scott, Oppenheimer & Co. and Stephens Inc. are acting as co-managers for the offering.