Buckeye Partners (NYSE:BPL) is hoping to get more bang for its buck by increasing the size of a planned units issue. The firm will float an underwritten public offering of 7.5 million units priced at $62.61 apiece. That represents an increase from the previously announced volume of 6.5 million units. Additionally, the company's underwriters have been granted a purchase option for up to an additional 1.125 units.
Buckeye Partners said it plans to use the proceeds of the issue to help fund its just-announced acquisition of Hess' East Coast terminal network, as well as for debt retirement and "general partnership purposes."
The joint book-running managers of the offering are Barclays, Morgan Stanley, UBS, JPMorgan Chase's J.P. Morgan, and the Securities wings of Wells Fargo and Deutsche Bank.
At the moment, Buckeye Partners has just over 106 million units outstanding, which most recently closed at the offering's price of $62.61 per unit.
Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of JPMorgan Chase and Wells Fargo. 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.
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