Rice Midstream Partners LP (RMP) 25M Common IPO Prices at $16.50/Unit (RICE)

Rice Energy (NYSE: RICE) announced the pricing of the Rice Midstream Partners LP ("Rice Midstream")(NYSE: RMP) initial public offering of 25,000,000 common units representing limited partner interests at $16.50 per common unit. Rice Midstream has granted the underwriters a 30-day option to purchase up to an additional 3,750,000 common units. The common units are expected to begin trading on the New York Stock Exchange on December 17, 2014 under the symbol "RMP." The offering is expected to close on December 22, 2014, subject to customary closing conditions.

Upon conclusion of the offering, the public will own an approximate 43.5% limited partner interest in Rice Midstream (or approximately 50.0% if the underwriters exercise in full their option to purchase additional common units). Rice Energy and its affiliates will own the remaining approximately 56.5% limited partner interest in Rice Midstream (or approximately 50.0% if the underwriters exercise in full their option to purchase additional common units). Rice Energy will own the general partner of Rice Midstream and all of its incentive distribution rights.

Rice Midstream intends to use the net proceeds of approximately $383.7 million (or approximately $441.6 million if the underwriters exercise in full their option to purchase additional common units) to make a $356.0 million (or $413.9 million if the underwriters exercise in full their option to purchase additional common units) distribution to Rice Energy, including a $195.3 million reimbursement for capital expenditures incurred on Rice Midstream's behalf, to fund $25.0 million of Rice Midstream's 2015 expansion capital expenditures, and to pay approximately $2.7 million of origination fees related to Rice Midstream's new revolving credit facility.

Barclays, Citigroup, Wells Fargo Securities, Goldman, Sachs & Co. and RBC Capital Markets are acting as joint book-running managers for the offering.

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