|SemGroup, L.P. Announces Planned Public Offering and Filing of Registration Statement by SemGroup Energy Partners, L.P.
March 9, 2007 -- Tulsa, Okla. – SemGroup, L.P. ("SemGroup") announced today it has filed a registration statement on Form S-1 with the Securities and Exchange Commission. The filing is related to a proposed public offering of 12,500,000 common units, representing limited partner interests in SemGroup Energy Partners, L.P. ("SemGroup Energy Partners") to be sold by a wholly owned subsidiary of SemGroup. The filing includes an option for the underwriters to purchase up to an additional 1,875,000 common units to be sold by SemGroup Energy Partners. An application has been made to have the units quoted on the NASDAQ Global Market under the symbol "SGLP."
Proceeds from this offering, together with proceeds received from SemGroup Energy Partners pursuant to borrowings under a credit facility to be established by SemGroup Energy Partners, will be used by SemGroup to reduce amounts outstanding under its senior secured credit facilities. SemGroup Energy Partners will use any proceeds it receives from the underwriters' over-allotment option to reduce outstanding borrowings under its proposed credit facility.
As currently filed, the common units offered to the public will represent approximately 59.3 percent of the outstanding equity of SemGroup Energy Partners, or approximately 62.5 percent if the underwriters exercise in full their over-allotment option. SemGroup will remain a privately held company and will indirectly own the remaining equity interests in SemGroup Energy Partners.
Citigroup Global Markets Inc. will act as the bookrunning manager of the offering. This offering of common units will be made only by means of a prospectus. A written prospectus meeting the requirements of Section 10 of the Securities Act of 1933, when available, may be obtained from the offices of Citigroup Global Markets Inc., Brooklyn Army Terminal, Attn: Prospectus Delivery Department, 140 58th Street, Brooklyn, New York 11220, phone: 718-765- 6732.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release does not constitute an offer to sell and is not a solicitation of an offer to buy. There will not be any sale of these securities in any state in which such offer, sale or solicitation is unlawful prior to registration or qualification under the securities law in any such state.
About SemGroup Energy Partners
SemGroup Energy Partners was recently formed by SemGroup to own, operate and develop a diversified portfolio of complementary midstream energy assets. SemGroup Energy Partners will provide crude oil gathering, transportation, terminalling and storage services primarily in its core operating areas in Oklahoma, Kansas and Texas. A subsidiary of SemGroup is the general partner of SemGroup Energy Partners. As of the closing of this offering, SemGroup Energy Partners will own and operate terminalling and storage facilities with approximately 6.7 million barrels of storage capacity, including approximately 4.8 million barrels of storage capacity located at the Cushing Interchange, two pipeline systems consisting of approximately 1,120 miles of pipeline, and crude oil transports used to gather oil at remote wellhead locations generally not covered by pipeline and gathering systems.
SemGroup Energy Partners' principal executive offices are located at Two Warren Place, 6120 South Yale Avenue, Suite 700, Tulsa, Oklahoma 74136 and its telephone number is (918) 524-8100.
SemGroup, L.P. is a privately held midstream company providing the energy industry means to move products from the wellhead to the wholesale marketplace. With operations in the United States, Canada, Mexico, Wales (United Kingdom), Switzerland and Vietnam, SemGroup's business segments focus on activities related to crude oil, refined petroleum products, natural gas, natural gas liquids and asphalt. Based in Tulsa, Oklahoma, SemGroup has been ranked in the top 10 of Forbes magazine's list of America's Largest Private Companies for the past two years.
Statements about the proposed offering are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside SemGroup's control, and a variety of risks that could cause results to differ materially from those expected by management of SemGroup or SemGroup Energy Partners.
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|Mar 09, 2007