SAN ANTONIO--(BUSINESS WIRE)--Apr. 25, 2017--
NuStar Energy L.P. (NYSE: NS) (“NuStar” or the “Partnership”) announced
today that it has priced an underwritten public offering of 14,000,000
of its 7.625% Series B Fixed-to-Floating Rate Cumulative Redeemable
Perpetual Preferred Units (the “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 1,400,000 Preferred Units from the
Partnership at the public offering price less the underwriting discount.
Distributions on the Preferred Units will be payable from and including
the date of original issue to, but not including, June 15, 2022, at a
rate of 7.625% per annum of the stated liquidation preference of $25.00.
On and after June 15, 2022, distributions on the Preferred Units will
accumulate at a percentage of the $25.00 liquidation preference equal to
an annual floating rate of three-month LIBOR plus a spread of 5.643%.
The offering is expected to close on or about April 28, 2017, subject to
customary closing conditions.
NuStar expects to receive aggregate net proceeds from the sale of the
Preferred Units of approximately $338.3 million (including estimated
offering expenses but not including the underwriters’ option to purchase
additional Preferred Units). NuStar intends to use the net proceeds of
the offering to fund a portion of the purchase price and related fees
and expenses for NuStar’s previously announced acquisition of Navigator
Energy Services, LLC. Pending such use, the Partnership intends to hold
the net proceeds of this offering as cash.
Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Morgan Stanley & Co. LLC and UBS Securities LLC are acting
as joint booking-running managers for the offering. BB&T Capital
Markets, a division of BB&T Securities, LLC, BBVA Securities Inc.,
Citigroup Global Markets Inc., DNB Markets, Inc. and U.S. Bancorp
Investments, Inc. are acting as co-managers for the offering. A copy of
the prospectus supplement and accompanying base prospectus relating to
this offering may be obtained from any of the underwriters, including
Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000,
Minneapolis, Minnesota 55402, Attention: WFS Customer Service,
Telephone: (800) 645-3751; Merrill Lynch, Pierce, Fenner & Smith
Incorporated, 200 North College Street, NC1-004-03-43, Charlotte, North
Carolina 28255, Attention: Prospectus Department, Telephone: (800)
294-1322, Email: firstname.lastname@example.org;
Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, New
York 10014, Attention: Prospectus Department; and UBS Securities LLC,
1285 Avenue of the Americas, New York, New York 10019, Attention:
Prospectus Specialist, Telephone: (888) 827-7275. You may also obtain
these documents for free when they are available by visiting the SEC’s
website at www.sec.gov.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy the securities described herein, nor shall there be
any sale of these securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. The offering may be made only by means of a prospectus and
related prospectus supplement meeting the requirements of Section 10 of
the Securities Act of 1933, as amended.
NuStar Energy L.P., a publicly traded master limited partnership based
in San Antonio, is one of the largest independent liquids terminal and
pipeline operators in the nation. NuStar currently has approximately
8,700 miles of pipeline and 79 terminal and storage facilities that
store and distribute crude oil, refined products and specialty liquids.
NuStar’s combined system has approximately 95 million barrels of storage
capacity, and NuStar has operations in the United States, Canada,
Mexico, the Netherlands, including St. Eustatius in the Caribbean, and
the United Kingdom.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements regarding future
events, including the size, timing and results of the offering and the
consummation of the acquisition. All forward-looking statements are
based on NuStar’s beliefs as well as assumptions made by and information
currently available to NuStar. These statements reflect NuStar’s current
views with respect to future events and are subject to various risks,
uncertainties and assumptions. These risks, uncertainties and
assumptions are discussed in NuStar’s 2016 Annual Report on Form 10-K
and subsequent filings with the SEC. NuStar undertakes no obligation to
update or revise any forward-looking statement except as may be required
by applicable law.
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Source: NuStar Energy L.P.
NuStar Energy, L.P., San Antonio
Investors, Chris Russell,
Treasurer and Vice President Investor Relations
Media, Mary Rose Brown, Executive Vice
President and Chief Administrative Officer,