USD Partners LP Announces Pricing of Public Offering of Common Units
HOUSTON–(BUSINESS WIRE)–USD Partners LP (NYSE: USDP) (the “Partnership”) announced today that it
has priced its previously announced underwritten public offering of
common units representing limited partner interests in the Partnership
(the “Common Units”). The Partnership agreed to sell 3,000,000 Common
Units at a public offering price of $11.60 per Common Unit (the
“Offering”). Gross proceeds to the Partnership from this Offering are
$34,800,000 before underwriter discounts and commissions and other
expenses. In connection with this Offering, the Partnership has granted
the underwriter for the Offering a 30-day option to purchase up to an
additional 450,000 Common Units.
Net proceeds from the Offering (including any proceeds from the exercise
of the underwriter’s option to purchase additional Common Units) will be
used by the Partnership for general partnership purposes, including to
repay outstanding indebtedness incurred under its revolving credit
facility, a portion of which was used to fund the purchase price for the
acquisition of a crude oil terminal in Stroud, Oklahoma. Amounts repaid
under the revolving credit facility may be re-borrowed to fund future
acquisitions, expansion capital expenditures and for general partnership
purposes.
Goldman Sachs & Co. LLC is acting as the sole underwriter for the
Offering.
A registration statement relating to these securities has been filed
with the Securities and Exchange Commission (the “SEC”) and is
effective. The Offering will be made only by means of a prospectus
supplement and an accompanying prospectus. A copy of the final
prospectus and the accompanying prospectus related to the Offering may
be obtained for free by visiting the SEC’s website at www.sec.gov.
Alternatively, copies may be obtained by contacting Goldman Sachs & Co.
LLC, Prospectus Department, 200 West Street, New York, NY 10282,
telephone: 1-866-471-2526, facsimile: 212-902-9316 or by emailing [email protected].
This press release does not constitute an offer to purchase securities
or a solicitation of an offer to sell any securities or an offer to sell
or the solicitation of an offer to purchase any securities, nor does it
constitute an offer or solicitation in any jurisdiction in which such
offer or solicitation is unlawful.
About USD Partners LP
USD Partners LP is a fee-based, growth-oriented master limited
partnership formed in 2014 by US Development Group LLC to acquire,
develop and operate energy-related logistics assets, including rail
terminals and other high-quality and complementary midstream
infrastructure. The Partnership’s assets consist primarily of: (i) a
crude oil origination terminal in Hardisty, Alberta, Canada, with
capacity to load up to two 120-railcar unit trains per day, (ii) a crude
oil terminal in Casper, Wyoming, with unit train-capable railcar loading
capacity in excess of 100,000 barrels per day and six customer-dedicated
storage tanks with 900,000 barrels of total capacity and (iii) a unit
train-capable ethanol destination terminal in West Colton, California.
In addition, the Partnership provides railcar services through the
management of a railcar fleet that is committed to customers on a
long-term basis.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of U.S. federal securities laws, including statements with
respect to the amount and timing of the close of the public offering and
the use of proceeds therefrom. Words and phrases such as “is expected,”
“is planned,” “believes,” “projects,” and similar expressions are used
to identify such forward-looking statements. However, the absence of
these words does not mean that a statement is not forward-looking.
Forward-looking statements relating to the Partnership are based on
management’s expectations, estimates and projections about the
Partnership, its interests and the energy industry in general on the
date this press release was issued. These statements are not guarantees
of future performance and involve certain risks, uncertainties and
assumptions that are difficult to predict. Therefore, actual outcomes
and results may differ materially from what is expressed or forecast in
such forward-looking statements. Factors that could cause actual results
or events to differ materially from those described in the
forward-looking statements include those as set forth under the heading
“Risk Factors” in the Partnership’s most recent Annual Report on Form
10-K and in our subsequent filings with the Securities and Exchange
Commission. The Partnership is under no obligation (and expressly
disclaims any such obligation) to update or alter its forward-looking
statements, whether as a result of new information, future events or
otherwise.
Contacts
USD Partners LP
Adam Altsuler, 281-291-3995
Vice President and
Chief Financial Officer
or
Ashley Means Zavala, 281-291-3965
Director,
Finance & Investor Relations