Sanchez Production Partners (SPP) Announces 8.82M Units Offering

November 10, 2016 6:37 AM EST

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Sanchez Production Partners LP (NYSE: SPP) announced that it has commenced an underwritten public offering of 8,823,529 common units representing limited partner interests in SPP, at an anticipated public offering price between $16.00 and $18.00 per common unit, pursuant to a registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission (the “SEC”). SPP expects to grant the underwriters a 30-day option to purchase up to an additional 1,323,530 common units at the public offering price. SPP intends to use the net proceeds received in connection with the offering as follows: (i) approximately $80 million to acquire a 50% equity interest in Carnero Processing, LLC (“Carnero Processing”) from Sanchez Energy Corporation (NYSE: SN) (“Sanchez Energy”); (ii) approximately $24.9 million to pay the purchase price, after normal and customary adjustments, for certain wellbores and escalating working interests and other production assets that SPP intends to acquire from Sanchez Energy; and (iii) the remaining net proceeds to repay borrowings outstanding under the Partnership’s credit facility (including borrowings that may result from the Partnership’s letters of credit, if any).

Citigroup, RBC Capital Markets, BofA Merrill Lynch and Johnson Rice & Company L.L.C. are acting as the joint book-running managers for the offering and Johnson Rice & Company L.L.C. is acting as the structuring agent. Seaport Global Securities, Stephens Inc. and Tudor, Pickering, Holt & Co. are acting as the co-managers for this offering. The offering is being made only by means of a written prospectus meeting the requirements of Section 10 of the Securities Act of 1933. When available, a copy of the preliminary prospectus may be obtained from:

Citigroupc/o Broadridge Financial Solutions1155 Long Island AvenueEdgewood, NY 11717Phone: (800) 831-9146RBC Capital Markets200 Vesey Street, 8th FloorNew York, NY 10281-8098Attention: Equity SyndicatePhone: (877) 822-4089Email: equityprospectus@rbccm.com
BofA Merrill LynchNC1-004-03-43200 North College Street, 3rd FloorCharlotte, NC 28255-0001Attention: Prospectus DepartmentEmail: dg.prospectus_requests@baml.comJohnson Rice & Company L.L.C.639 Loyola Avenue, Suite 2775New Orleans, LA 70113Attention: Syndicate DepartmentPhone: (800) 443-5924

When available, to obtain a copy of the preliminary prospectus free of charge, visit the SEC’s website at www.sec.gov.

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.



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