(Tulsa)– A company with extensive holdings in Cushing has announced plans to take a subsidiary public. A statement issued on SemGroup, L.P.’s website says:
SemGroup Energy Partners, L.P. has announced that it has filed with the Securities and Exchange Commission a registration statement for an underwritten public offering of 6,000,000 of its common units representing limited partner interests. The net proceeds from this offering will be used to partially fund the previously announced acquisition of 46 U.S. liquid asphalt cement and residual fuel oil terminalling and storage facilities with an aggregate shell capacity of approximately 6.6 million barrels from SemMaterials, L.P., which is a subsidiary of privately owned SemGroup, L.P. (“SemGroup”). The underwriters will be granted a 30-day over-allotment option to purchase up to 900,000 additional common units.
Upon conclusion of the offering, the public will own approximately 60.6% of the outstanding equity of SemGroup Energy Partners, or approximately 61.6% if the underwriters exercise their over-allotment option in full. SemGroup will indirectly own the remaining equity interests in SemGroup Energy Partners.
Citigroup Global Markets Inc. will act as the bookrunning manager of the offering.