Vanguard Natural Resources (NASDAQ: VNR) is tapping the markets to raise fresh capital. The company is issuing 7 million of its common units in an underwritten public flotation priced at $28.35 per unit. In addition, the company's underwriters have been granted a 30-day purchase option for up to an additional 1.05 million units, at the offering price minus an underwriting discount.
Vanguard anticipates that it will take in around $191 million in net proceeds from the issue, which will swell to almost $220 million if the underwriter option is fully exercised. The company plans to use the proceeds of the issue to help retire debt drawn from a revolving credit facility.
The joint book-running managers for the offering include JPMorgan Chase's J.P. Morgan, UBS, Wells Fargo's Securities arm, and Bank of America's Merrill Lynch. The issue is expected to close on June 4.
