M&A

11 November, 2009

UPDATE 1-Pioneer Southwest prices unit offering at $20.74 each

* Units priced at 4 pct discount to Tuesday's close

* Sees total proceeds $53 mln

* Shares fall 5 pct

Nov 11 (Reuters) - Oil and natural gas company Pioneer Southwest Energy Partners LP (PSE.N) said it has priced a public offering of 2.7 million common units at $20.74 apiece, a 4 percent discount to their Tuesday's close.

The company expects net proceeds from the offering of $53 million, which will be used to repay its revolving credit.

The offering is scheduled to close Nov. 16.

Pioneer Southwest joins an inflated list of energy companies that have chosen equity offerings as a means to raise funds to bolster their capital budget and expansion plans.

Pioneer units fell 5 percent to $20.60 in morning trade on the New York Stock Exchange. (Reporting by Arup Roychoudhury in Bangalore; Editing by Gopakumar Warrier)

Source: http://www.reuters.com