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Eagle Rock Energy boosts offering to 9M units

HOUSTON (AP) -- Eagle Rock Energy Partners LP on Wednesday boosted its underwritten public offering to 9 million common units and priced the offering at $9.31 per common unit. That would generate about $83.8 million in proceeds.

The price represents a 3 percent discount to the units' Tuesday closing price of $9.64. The offering is expected to close on Monday.

The Houston-based natural gas producer also granted the offering's underwriters — Capital Markets, BofA Merrill Lynch, Citigroup, UBS Investment Bank and Wells Fargo Securities — a 30-day option to buy up to 1.4 million additional units.

Eagle Rock said Tuesday that it would sell 8 million units in the offering, with an underwriter option of up to 1.2 million additional units.

The partnership said Wednesday it plans to use the net proceeds from the offering to pay back some of its debt.

Eagle Rock units fell 32 cents, or 3 percent, to $9.32 in morning trading Wednesday.