OKLAHOMA CITY, May 5, 2015
/PRNewswire/ -- New Source Energy Partners L.P., a
Delaware limited partnership
(NYSE: NSLP) (the "Partnership" or "New Source"), today announced
the pricing of its public offering of 1,760,000 of its 11.00%
Series A Cumulative Convertible Preferred Units ("Series A
Preferred Units") at a price of $25.00 per unit. The Partnership has
granted the underwriters a 30-day option to purchase up to an
additional 264,000 Series A Preferred Units from the Partnership at
the public offering price less the underwriting discount.
Distributions will be payable on the Series A Preferred Units at an
initial rate of 11.00% per annum of the stated liquidation
preference of $25.00. The
offering is expected to close on May 8,
2015, subject to customary closing conditions.
The Partnership expects to receive net proceeds of approximately
$40.4 million (or approximately
$46.6 million if the underwriters
exercise their option to purchase an additional 264,000 Series A
Preferred Units), after deducting underwriting discounts and
estimated offering expenses, from the offering, and intends to use
all of the net proceeds from the offering to repay a portion of the
indebtedness outstanding under its revolving credit facility.
In accordance with the Consent Letter, dated April 8, 2015, relating to the Partnership's
revolving credit facility, the Partnership may not declare and pay
distributions on its common units unless it reduces total
outstanding borrowings under its revolving credit facility to at
least $55 million. Although the
Partnership expects to receive net proceeds at the closing of the
offering in a sufficient amount to reduce total outstanding
borrowings to at least $55 million,
it may not declare a distribution on its common units until such
repayment occurs.
Stifel is serving as lead book-running manager and Baird is
serving as joint book-running manager for the offering.
Janney Montgomery Scott, Oppenheimer
& Co. and Wunderlich are serving as co-leads for the
offering. An investor may obtain a free copy of the
prospectus supplement and accompanying base prospectus relating to
the offering by visiting EDGAR on the SEC website at
www.sec.gov. When available, a copy of the prospectus
supplement and accompanying base prospectus relating to the
offering may also be obtained from:
Stifel, Nicolaus & Company, Incorporated
Attn: Prospectus Department
One South Street, 15th Floor
Baltimore, MD 21202
syndprospectus@stifel.com
(855) 300-7136
Robert W. Baird & Co. Incorporated
Attn: Syndicate Department
777 East Wisconsin Avenue
Milwaukee, WI 53202
syndicate@rwbaird.com
(800) 792-2473
The shelf registration statement relating to these securities
has previously been filed with the SEC and was declared effective
on April 21, 2014. This press
release does not constitute an offer to sell or a solicitation of
an offer to buy Series A Preferred Units or any other securities,
nor shall there be any sale of these securities in any jurisdiction
in which such an offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of
any such jurisdiction. The offering of these securities may
be made only by means of the prospectus supplement and the related
base prospectus.
About New Source Energy Partners L.P.
New Source Energy Partners L.P. is an independent energy
partnership engaged in the production of its onshore oil and
natural gas properties that extends across conventional resource
reservoirs in east-central Oklahoma and in oilfield services that
specialize in increasing efficiencies and safety in drilling and
completion processes. For more information on the Partnership,
please visit www.newsource.com.
Forward-Looking Statements
This news release contains "forward-looking statements" within
the meaning of federal securities laws. These statements
express a belief, expectation or intention and are generally
accompanied by words that convey projected future events or
outcomes. We have based these forward-looking statements on
our current expectation and assumptions and analyses made by us in
light of our experience and our perception of historical trends,
current conditions and expected future developments, as well as
other factors we believe are appropriate under the
circumstances. However, whether actual results and
developments will conform with our expectations and predictions is
subject to a number of risks and uncertainties, many of which are
beyond our control. For a full discussion of these risks and
uncertainties, please refer to the "Risk Factors" section of the
Partnership's Annual Report on Form 10-K for the year ended
December 31, 2014 and the information
included in the Partnership's quarterly and current reports and
other public filings. These forward-looking statements are
based on and include the Partnership's expectations as of the date
hereof. We undertake no obligation to update or revise any
forward-looking statements except as may be required by applicable
law.
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SOURCE New Source Energy Partners L.P.