WASHINGTON (dpa-AFX) - Kinder Morgan Management, LLC (KMR) said Monday that the underwriters of its recently completed public offering of 8.8 million shares have exercised in full their option to purchase an additional 1.32 million shares.
Barclays and BofA Merrill Lynch acted as joint book-running managers, and Credit Suisse, Deutsche Bank Securities, J.P. Morgan, RBC Capital Markets and UBS Investment Bank acted as co-managers for the offering.
The exercise price for the additional shares is $71.85 per share, the same as the price at which the 8.8 million shares were sold to the underwriters.
Total net proceeds from the sale of the 10.12 million shares are about $726.9 million.
Kinder Morgan Management plans to use all of the proceeds from the sale of shares to purchase a corresponding number of i-units from Kinder Morgan Energy Partners, L.P. (KMP), and KMP plans to use the proceeds from Kinder Morgan Management's purchase of such i-units to pay a portion of the purchase price for its recently completed drop down transaction.
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