Blueknight Energy Partners, L.P. (NASDAQ: BKEP) (“BKEP” or the
“Partnership”) today announced the commencement of an underwritten
public offering of 3,000,000 common units representing limited partner
interests of the Partnership. The Partnership will also grant the
underwriter a 30-day option to purchase up to 450,000 additional common
units. The Partnership intends to use the net proceeds from the
offering, including any net proceeds from the underwriter’s exercise of
its option to purchase additional common units, to fund a portion of the
repurchase of 13,335,390 of its Series A preferred units from Blueknight
Energy Holdings, Inc. and CB-Blueknight, LLC. If the share repurchase
does not close, then the Partnership intends to use the net proceeds
from this offering for general partnership purposes, including, among
other things, repayment of borrowings outstanding under our credit
facility.
Wells Fargo Securities will act as the sole underwriter for the offering.
When available, copies of the preliminary prospectus supplement,
prospectus supplement and accompanying base prospectus relating to the
public offering may be obtained free of charge on the Securities and
Exchange Commission’s website at www.sec.gov
or from the underwriter of the offering, Wells Fargo Securities, Attn:
Equity Syndicate Dept., 375 Park Avenue, New York, NY 10152, by
telephone (800) 326-5897 or by email cmclientsupport@wellsfargo.com.
The common units to be issued pursuant to the public offering will be
offered and sold pursuant to an effective shelf registration statement
on Form S-3 previously filed with the Securities and Exchange Commission
(the “SEC”). This press release does not constitute an offer to sell or
the solicitation of an offer to buy the securities described herein, nor
shall there be any sale of these securities in any state or jurisdiction
in which such an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction. The offering is being made only by means of a prospectus
and related prospectus supplement meeting the requirements of Section 10
of the Securities Act of 1933, as amended.
Forward-Looking Statements
This release may include forward-looking statements. Statements included
in this release that are not historical facts are forward-looking
statements. Such forward-looking statements are subject to various risks
and uncertainties. These risks and uncertainties include, among other
things, uncertainties relating to the Partnership’s future cash flows
and operations, the Partnership’s ability to pay future distributions,
future market conditions, current and future governmental regulation,
future taxation and other factors discussed in the Partnership’s filings
with the SEC. If any of these risks or uncertainties materializes, or
should underlying assumptions prove incorrect, actual results or
outcomes may vary materially from those expected. The Partnership
undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
About Blueknight Energy Partners, L.P.
BKEP owns and operates a diversified portfolio of complementary
midstream energy assets consisting of approximately 7.4 million barrels
of crude oil storage located in Oklahoma and Texas, approximately 6.6
million barrels of which are located at the Cushing, Oklahoma
Interchange, approximately 985 miles of crude oil pipeline located
primarily in Oklahoma and Texas, approximately 240 crude oil
transportation and oilfield services vehicles deployed in Kansas,
Oklahoma and Texas and approximately 8.2 million barrels of combined
asphalt product and residual fuel oil storage located at 45 terminals in
23 states. BKEP provides integrated services for companies engaged in
the production, distribution and marketing of crude oil, asphalt and
other petroleum products. BKEP is headquartered in Oklahoma City,
Oklahoma.
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