PVR Partners (NYSE:PVR) is looking to widen its capital base with an offering of fresh partnership units. The company said it has commenced a 5.5 million-strong issue of common units in an underwritten public flotation. Additionally, the company expects to grant the offering's sole underwriter, Barclays, a 30-day purchase option for up to an additional 825,000 units.
PVR Partners said it plans to use the proceeds of the issue to repay debt incurred under its revolving credit facility. However, the company said it expects to occasionally reborrow amounts repaid under the facility "for general partnership purposes."
Currently, PVR Partners has just over 95.7 million units outstanding, and its stock trades at $24.11 per unit.
Fool contributor Eric Volkman has no position in PVR Partners. Nor does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.