Rice Midstream Partners Falls In NYSE Debut

(RTTNews) - Shares of Rice Midstream Partners LP (RMP) fell in their trading debut on the New York Stock Exchange Wednesday following its initial public offering.

Rice Midstream Partners shares opened for trading at $15.79, and are currently trading at $15.77 after trading as high as $16.34 and as low as $15.75 earlier in the session.

Rice Midstream priced its IPO of 25 million units representing limited partner interests at $16.50 per unit, whcih is below its previously estimated price range of $19.00 and $21.00 per unit.

Rice Midstream has also granted the underwriters a 30-day option to purchase up to an additional 3.75 million units.

The offering is expected to close on December 22.

After the offering closes, the public will own an about 43.5% limited partner interest in Rice Midstream, or about 50.0% if the underwriters exercise in full their option to purchase additional units. Rice Energy and its affiliates will own the remaining limited partner interest. Rice Energy will own the general partner of Rice Midstream and all of its incentive distribution rights.

Rice Midstream plans to use the net proceeds of about $383.7 million, or about $441.6 million if the underwriters exercise in full their option to purchase additional common units, to make a $356.0 million, or $413.9 million if the underwriters exercise in full their option to purchase additional common units, 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.