American Midstream edges higher after pricing pared-down offering

American Midstream Partners (AMID +0.8%) turns higher after pricing a scaled-down private placement of 4.6M equity units at $26.09 each, a 12% discount to Monday's closing price for the stock.

AMID says it plans to use the $120M in gross proceeds to repay the $115M in debt borrowed through its revolving credit facility to complete its acquisition of natural gas processing and gathering assets from DCP Midstream.

Prior to the acquisition closing, one of DCP's customers said it was moving its production from Mobile Bay and Dauphin Island in the Gulf of Mexico, reducing the value of the acquired assets; the companies then amended the purchase price, and AMID cut the size of its stock offering from its original $200M.

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