By midafternoon, shares had spiked 5.5% to $40.88. Trading volume of 4.5 million was far higher than its three-month daily average of 50,548.
The oil and gas refiner and marketer will offer 5.3 million shares of its common stock and an additional 3.7 million common stock will be offered by Summit Midstream Partners Holdings (SMP Holdings). The company priced its public offering at $38.75 per share and scheduled it to close on March 17, subject to regulatory approval.
Summit Midstream said the net proceeds from the offering will be used to finance part of its recently-announced acquisition of Red Rock Gathering Company, a natural gas processor in Colorado and Utah. Summit will receive none of the funds from SMP Holdings' sale.
Underwriters will also have access to a 30-day option to purchase an additional 1.35 million common shares from SMP Holdings.
Barclays, Bank of America, Morgan Stanley, Deutsche Bank, RBC Capital, Citigroup, Goldman Sachs and Wells Fargo are acting as joint book-running managers, while Baird and BB&T Capital Markets will act as co-managers.
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TheStreet Ratings team rates SUMMIT MIDSTREAM PARTNERS LP as a Hold with a ratings score of C-. The team has this to say about their recommendation: