SAN ANTONIO--(BUSINESS WIRE)--Nov. 17, 2016--
NuStar Energy L.P. (NYSE: NS) (“NuStar” or the “Partnership”) today
announced that it has priced an underwritten public offering of
8,000,000 of its 8.50% Series A 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 1,200,000 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, December 15,
2021, at a rate of 8.50% per annum of the stated liquidation preference
of $25.00. On and after December 15, 2021, 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 6.766%. The offering is expected to close on or
about November 25, 2016, subject to customary closing conditions.
NuStar expects to receive aggregate net proceeds from the sale of the
Preferred Units of approximately $193.3 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 for general partnership purposes, including the funding of
future capital expenditures and to repay amounts outstanding under its
revolving credit agreement.
Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith
Incorporated and UBS Securities LLC are acting as joint-booking managers
for the offering. J.P. Morgan Securities LLC and RBC Capital Markets,
LLC are acting as senior co-managers for the offering. FBR Capital
Markets & Co., BB&T Capital Markets, a division of BB&T Securities, LLC,
Citigroup Global Markets Inc., Mizuho Securities USA Inc., and PNC
Capital Markets LLC 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; 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.
The Partnership’s combined system has approximately 94 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.
This press release includes forward-looking statements regarding future
events. All forward-looking statements are based on the Partnership’s
beliefs as well as assumptions made by and information currently
available to the Partnership. These statements reflect the Partnership’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 the Partnership’s 2015 annual report on
Form 10-K and subsequent filings with the Securities and Exchange
Commission. The Partnership undertakes no obligation to update or revise
any forward-looking statement except as may be required by applicable
law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161117006362/en/
Source: NuStar Energy L.P.
NuStar Energy, L.P., San Antonio
Investors, Chris Russell,
Treasurer and Vice President Investor Relations
Investor Relations:
210-918-3507
or
Media, Mary Rose Brown, Executive Vice
President,
Corporate Communications: 210-918-2314
website: http://www.nustarenergy.com