Vanguard Natural Resources (NASDAQOTH:VNRSQ) 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.
Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Wells Fargo and owns shares of Bank of America, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.