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8-K - 8-K - EAGLE ROCK ENERGY PARTNERS L P | a11-12943_28k.htm |
Exhibit 99.1
May 24, 2011
Eagle Rock Prices Private Offering of $300 Million of 83/8% Senior Notes
HOUSTON - Eagle Rock Energy Partners, L.P. (Eagle Rock or the Partnership) (NASDAQ: EROC) announced today that it priced its private offering of $300 million in aggregate principal amount of 83/8% senior unsecured notes due 2019 (the Notes) to yield 8.50% to maturity.
The Partnership intends to use the net proceeds from the Notes offering of approximately $289.2 million to repay indebtedness under its existing revolving credit facility. The offering is expected to close on May 27, 2011, subject to the satisfaction of customary closing conditions.
The Notes have not been registered under the Securities Act of 1933, as amended (the Securities Act), or any state securities laws, and unless so registered, the Notes may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes are expected to be eligible for trading by qualified institutional buyers under Rule 144A and non-US persons under Regulation S. This announcement is being issued pursuant to Rule 135c under the Securities Act and shall not constitute an offer to sell or the solicitation of an offer to buy the Notes.
Contacts:
Eagle Rock Energy Partners, L.P.
Jeff Wood, 281-408-1203
Senior Vice President and Chief Financial Officer
Adam Altsuler, 281-408-1350
Director, Corporate Finance and Investor Relations
This news release may include forward-looking statements. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements and speak only as of the date on which such statement is made. These statements are based on certain assumptions made by the Partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are
appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership. These include risks related to volatility of commodity prices; market demand for natural gas and natural gas liquids; the effectiveness of the Partnerships hedging activities; the Partnerships ability to retain key customers; the Partnerships ability to continue to obtain new sources of natural gas supply; the availability of local, intrastate and interstate transportation systems and other facilities to transport natural gas and natural gas liquids; competition in the oil and gas industry; the Partnerships ability to obtain credit and access the capital markets; general economic conditions; and the effects of government regulations and policies. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Partnerships actual results and plans could differ materially from those implied or expressed by any forward-looking statements. The Partnership assumes no obligation to update any forward-looking statement as of any future date. For a detailed list of the Partnerships risk factors, please consult the Partnerships Form 10-K, filed with the Securities and Exchange Commission (SEC) for the year ended December 31, 2010 and the Partnerships Forms 10-Q filed with the SEC for subsequent quarters, as well as any other public filings and press releases.
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