By market open, shares had tripped 5.4% to $27.92.
The Houston-based business said it would offer 5.4 million shares of common stock representing limited partner interests in Exterran at $28.36 a share. The offering is expected to close around April 2.
The company also granted underwriters a 30-day option to purchase an additional 810,000 common units to cover over-allotments.
Net proceeds, totaling approximately $147.3 million, will be used to fund a portion of its previously-announced pending acquisition of natural gas compression assets. In late February, Exterran announced it would purchase 334 compression units for $360 million from Chesapeake Energy (CHK) subsidiary MidCon Compression.
Remaining funds from the offering will be used to pay down outstanding debt under its revolving credit facility.
Wells Fargo, Bank of America, JPMorgan, RBC Capital Markets and Goldman Sachs will act as joint book-running managers.
TheStreet Ratings team rates EXTERRAN PARTNERS LP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXTERRAN PARTNERS LP (EXLP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."