Eagle Rock (EROC) Closes 8.8M Offering; Underwriters Exercise Full Overallotment

August 17, 2012 12:25 PM EDT
Eagle Rock Energy Partners, L.P. (Nasdaq: EROC) has closed its underwritten public offering of 10,120,000 common units representing limited partner interests, which includes 1,320,000 common units purchased pursuant to the full exercise of the underwriters' option to purchase additional common units to cover over-allotments.

The Partnership intends to use the approximately $84.5 million in net proceeds from the offering, after deducting underwriting discounts, commissions and offering expenses, to fund a portion of the consideration for the proposed acquisition of two of BP America Production Company's gas processing facilities in the Texas Panhandle and the associated gathering system (the "BP Acquisition"). Pending the application of the net proceeds to fund a portion of the consideration for the BP Acquisition, the Partnership intends to use the net proceeds to repay a portion of the outstanding borrowings under its credit facility. If the BP Acquisition is not consummated for any reason, the Partnership will use the net proceeds for general partnership purposes, including future acquisitions and capital program expenditures.

UBS Investment Bank, BofA Merrill Lynch, Citigroup, RBC Capital Markets and Wells Fargo Securities acted as joint book-running managers of the offering.

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