Public offering from Phillips 66 partners

Phillips 66 Partners LP have announced the commencement of an underwritten public offering of 5 250 000 common units representing limited partner interests in the Partnership. In connection with the offering, the Partnership will grant the underwriters a 30-day option to purchase up to an additional 787 500 common units.

The Partnership expects to use the net proceeds from this offering to fund a portion of the purchase price of the Partnership’s previously announced acquisition of Phillips 66’s equity interests in the Sand Hills and Southern Hills natural gas liquids pipeline systems and the Explorer refined products pipeline system. The Partnership intends to use the remaining portion of the net proceeds from this offering for general partnership purposes, including repayment of outstanding indebtedness and to fund capital expenditures. The closing of the Pipeline Transaction is not conditioned on the closing of the offering, and the offering is not conditioned on the closing of the Pipeline Transaction. If the Pipeline Transaction is not consummated for any reason, the Partnership expects to use the net proceeds from the offering for general partnership purposes, including repayment of outstanding indebtedness and to fund capital expenditures.

The Partnership expects to use the net proceeds from any exercise of the underwriters’ option to purchase additional common units for general partnership purposes, including repayment of outstanding indebtedness and to fund future acquisitions and capital expenditures.

Barclays, J.P. Morgan, BofA Merrill Lynch, Citigroup, Goldman, Sachs & Co., Morgan Stanley, RBC Capital Markets and Wells Fargo Securities are acting as the joint book-running managers for the offering.

Adapted from press release by Joe Green

Read the article online at: https://www.worldpipelines.com/business-news/17022015/public-offering-phillips-partners-132/