USD Partners LP Announces Pricing of Public Offering of Common Units

Category:

Wednesday, June 7, 2017 7:26 pm EDT

Dateline:

HOUSTON

Public Company Information:

NYSE:
USDP
US9033181036

HOUSTON--(BUSINESS WIRE)--USD Partners LP (NYSE: USDP) (the “Partnership”) announced today that it has priced its previously announced underwritten public offering of common units representing limited partner interests in the Partnership (the “Common Units”). The Partnership agreed to sell 3,000,000 Common Units at a public offering price of $11.60 per Common Unit (the “Offering”). Gross proceeds to the Partnership from this Offering are $34,800,000 before underwriter discounts and commissions and other expenses. In connection with this Offering, the Partnership has granted the underwriter for the Offering a 30-day option to purchase up to an additional 450,000 Common Units.

Net proceeds from the Offering (including any proceeds from the exercise of the underwriter’s option to purchase additional Common Units) will be used by the Partnership for general partnership purposes, including to repay outstanding indebtedness incurred under its revolving credit facility, a portion of which was used to fund the purchase price for the acquisition of a crude oil terminal in Stroud, Oklahoma. Amounts repaid under the revolving credit facility may be re-borrowed to fund future acquisitions, expansion capital expenditures and for general partnership purposes.

Goldman Sachs & Co. LLC is acting as the sole underwriter for the Offering.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission (the “SEC”) and is effective. The Offering will be made only by means of a prospectus supplement and an accompanying prospectus. A copy of the final prospectus and the accompanying prospectus related to the Offering may be obtained for free by visiting the SEC’s website at www.sec.gov. Alternatively, copies may be obtained by contacting Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by emailing prospectus-ny@ny.email.gs.com.

This press release does not constitute an offer to purchase securities or a solicitation of an offer to sell any securities or an offer to sell or the solicitation of an offer to purchase any securities, nor does it constitute an offer or solicitation in any jurisdiction in which such offer or solicitation is unlawful.

About USD Partners LP

USD Partners LP is a fee-based, growth-oriented master limited partnership formed in 2014 by US Development Group LLC to acquire, develop and operate energy-related logistics assets, including rail terminals and other high-quality and complementary midstream infrastructure. The Partnership’s assets consist primarily of: (i) a crude oil origination terminal in Hardisty, Alberta, Canada, with capacity to load up to two 120-railcar unit trains per day, (ii) a crude oil terminal in Casper, Wyoming, with unit train-capable railcar loading capacity in excess of 100,000 barrels per day and six customer-dedicated storage tanks with 900,000 barrels of total capacity and (iii) a unit train-capable ethanol destination terminal in West Colton, California. In addition, the Partnership provides railcar services through the management of a railcar fleet that is committed to customers on a long-term basis.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of U.S. federal securities laws, including statements with respect to the amount and timing of the close of the public offering and the use of proceeds therefrom. Words and phrases such as “is expected,” “is planned,” “believes,” “projects,” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to the Partnership are based on management’s expectations, estimates and projections about the Partnership, its interests and the energy industry in general on the date this press release was issued. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include those as set forth under the heading “Risk Factors” in the Partnership’s most recent Annual Report on Form 10-K and in our subsequent filings with the Securities and Exchange Commission. The Partnership is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

USD Partners LP
Adam Altsuler, 281-291-3995
Vice President and Chief Financial Officer
or
Ashley Means Zavala, 281-291-3965
Director, Finance & Investor Relations