DCP Midstream, LP’s $100 Million Preferred Unit Offering

Baker Botts advised the Underwriters in the transaction

DCP Midstream, LP (NYSE: DCP) (“DCP”) announced the pricing of an underwritten public offering of 4,000,000 of its 7.95% Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (the “Series C Preferred Units”) at a price of $25 per Series C Preferred Unit. DCP also granted the underwriters a 30-day option to purchase up to 600,000 additional Series C Preferred Units. RBC Capital Markets, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC acted as joint book-running managers of the offering. The offering is expected to close on October 4, 2018, subject to the satisfaction of customary closing conditions.

DCP expects to receive net proceeds of approximately $96.1 million, after deducting the underwriters’ discounts and estimated offering expenses (excluding any proceeds from the exercise of the underwriters’ over-allotment option). DCP intends to use the net proceeds from this offering, including the proceeds from any exercise of the underwriters’ over-allotment option, for general partnership purposes, including the funding of capital expenditures and the repayment of outstanding indebtedness under its revolving credit facility.

Baker Botts advised with a team including Josh Davidson (Picture; Houston); A.J. Ericksen, Sarah E. Berens, Katie Belleville, Steven Lackey (Securities) and T. Chuck Campbell (Tax).

Involved fees earner: Joshua Davidson – Baker Botts; A.J. Ericksen – Baker Botts; Sarah Berens – Baker Botts; Steven Lackey – Baker Botts; Katie Mize Belleville – Baker Botts; Chuck Campbell – Baker Botts;

Law Firms: Baker Botts;

Clients: Merrill Lynch, Pierce, Fenner & Smith Incorporated; RBC Capital Markets; JP Morgan Securities; Wells Fargo Securities;

Author: Ambrogio Visconti