Legacy Reserves prices offering at $15.85 per unit

Legacy Reserves prices public offering of 3.3 million units at $15.85 per unit

• On 11:08 am EDT, Tuesday September 15, 2009

MIDLAND, Texas (AP) -- Independent oil and gas operator Legacy Reserves LP said Tuesday it priced a public offering of 3.3 million units at the below market price of $15.85 per unit.

That represents a discount of 6 percent to its closing price Monday of $16.87.

The underwriters have been granted a 30-day option to buy up to 495,000 additional units.

Legacy Reserves said it intends to use the net proceeds from the offering for general partnership purposes, including potential future acquisitions. It also plans to use the net proceeds to pay down debt under its revolving credit facility.

The offering is scheduled to close Sept. 18.

Wells Fargo Securities LLC, Raymond James & Assoc. Inc. and RBC Capital Markets Corp. are acting as joint book-running managers. Oppenheimer & Co. Inc., Stifel Nicolaus & Co. Inc. and Wunderlich Securities Inc. are acting as co-managers.

The company currently has roughly 31.1 million units outstanding, according to a filing with the Securities and Exchange Commission.

Legacy Reserves slid 60 cents, or 3.6 percent, to $16.27 in morning trading.