CANONSBURG, Pa., Dec. 22, 2014 /PRNewswire/ -- Rice Energy Inc.
(NYSE:RICE) ("Rice Energy") today announced the completion of the
Rice Midstream Partners LP (NYSE: RMP) ("Rice Midstream") initial
public offering of 28,750,000 common units representing limited
partner interests at a price to the public of $16.50 per common unit, including the
exercise in full by the underwriters' option to purchase an
additional 3,750,000 common units. Rice Energy and the public
each own an approximate 50.0% limited partner interest in Rice
Midstream.
Rice Midstream intends to use the net proceeds of $441.6 million to make a $413.9 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
approximately $2.7 million of
origination fees related to Rice Midstream's new revolving credit
facility.
Barclays, Citigroup, Wells Fargo Securities, Goldman, Sachs
& Co. and RBC Capital Markets acted as joint book-running
managers for the offering.
In addition, on December 22, 2014,
each of Rice Midstream Holdings LLC ("Rice Holdings"), a
wholly-owned subsidiary of Rice Energy formed to hold the retained
midstream assets of Rice Energy, and Rice Midstream have entered
into new revolving credit facilities to provide additional capital
for midstream investments. Rice Midstream has entered into a
$450.0 million revolving credit
facility to fund gas gathering and compression capital expenditures
in Pennsylvania. Rice Holdings has
entered into a $300.0 million
revolving credit facility to fund development for Ohio gas gathering and compression assets and
water sourcing and distribution assets in Pennsylvania and Ohio.
About Rice Midstream
Rice Midstream Partners LP is a limited partnership formed to
own, operate, develop and acquire midstream assets in the
Appalachian Basin. For more information, please visit
www.ricemidstream.com.
About Rice Energy
Rice Energy Inc. is an independent natural gas and oil company
engaged in the acquisition, exploration and development of natural
gas and oil properties in the Appalachian Basin. For more
information, please visit www.riceenergy.com.
Forward-Looking Statements
This release includes "forward-looking statements" within the
meaning of federal securities laws. Such forward-looking statements
are subject to a number of risks and uncertainties, many of which
are beyond Rice Energy's and Rice Midstream's control. All
statements, other than historical facts included in this release,
are forward-looking statements. All forward-looking statements
speak only as of the date of this release. Although Rice Midstream
believes that the plans, intentions and expectations reflected in
or suggested by the forward-looking statements are reasonable,
there is no assurance that these plans, intentions or expectations
will be achieved. Therefore, actual outcomes and results could
materially differ from what is expressed, implied or forecast in
such statements.
This release contains certain forward-looking statements that
are based on current plans and expectations and are subject to
various risks and uncertainties. Rice Midstream's business and any
offering may be influenced by many factors that are difficult to
predict, involve uncertainties that may materially affect actual
results and are often beyond Rice Midstream's control. These
factors include, but are not limited to, changes to business plans
as circumstances warrant. For a full discussion of these risks and
uncertainties, please refer to the "Risk Factors" section of the
prospectus. Rice Midstream refers you to that discussion for
further information.
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SOURCE Rice Energy Inc.