USA Compression Partners, LP: Gassed on secondary offering

USA Compression Partners LP (Texas)

13/06/2018 14:08

** USA Compression Partners  USAC.N  units down ~9 pct
premarket after MLP's secondary offering
    ** USAC threatening to erase all of this year's gains and
trade at lowest level since Nov if losses hold
    ** Co says USA Compression Holdings, LLC sells 5 mln units
for total gross proceeds of approx $81 mln  urn:newsml:reuters.com:*:nBw6c51gka 
    ** Sole bookrunner JP Morgan bought the units and reoffered
them at $16.20, a 10 pct discount to USAC's Tues close; block
gets done at bottom of $16.20-$16.70 marketed range
    ** Offering represents ~6 pct of MLP's total units
outstanding and 25 days of trading volume
    ** In early Apr, USA Compression completed its previously
announced $1.8 bln deal to acquire Energy Transfer's  ETP.N 
 ETE.N  compression business  urn:newsml:reuters.com:*:nBw7j2Lbca
    ** Energy Transfer and Carlyle Group LP  CG.O  are top two
USAC unitholders, per Thomson Reuters data
    ** USAC units, which are up 8.7 pct in 2018, hit 1-yr high
of $19.33 in Jan in wake of deal with ETP
    

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