Breitburn Energy Partners LP said on Sunday that it would sell $1 billion of convertible preferred units and senior secured notes in private offerings to investment funds managed by EIG Global Energy Partners and other purchasers.
The offerings are expected to close on April 8, according to a statement.
Breitburn will issue US$350 million of perpetual convertible preferred units at a price of US$7.50.
The $650 million of senior secured notes, due May 2020, will pay 9.25 % per year in interest, the statement said.
Breitburn also said that it plans to cut its common distribution to US$0.50 per unit on an annualized basis in conjunction with the offerings.
“This lower distribution rate is part of an overall plan to increase Breitburn’s liquidity and strategic flexibility for a potentially prolonged market downturn,” the statement said. – Reuters