Dec 17, 2014 1 min read

CANONSBURG – Rice Energy Inc. Wednesday said it priced the initial public offering of its Rice Midstream Partners LP of 25,000,000 common units representing limited partner interests at $16.50 per common unit.

The company said in a news release Rice Midstream granted underwriters a 30-day option to purchase up to an additional 3,750,000 common units.

The units were to begin trading on New York Stock Exchange Wednesday under the symbol “RMP.” 

The offering is expected to close Monday.

Upon conclusion of the offering, the public will own 43.5 percent limited partner interest in Rice Midstream. Rice Energy and its affiliates will own the remaining 56.5 percent limited partner interest in Rice Midstream. Rice Energy will own the general partner of Rice Midstream and all of its incentive distribution rights.

Rice Midstream intends to use the net proceeds of $383.7 million to make a $356.0 million distribution to Rice Energy, including a $195.3 million reimbursement for capital expenditures incurred on Rice Midstream’s behalf, to fund $25.0 million of Rice Midstream’s 2015 expansion capital expenditures, and to pay $2.7 million of origination fees related to Rice Midstream’s new revolving credit facility.