Compressco Partners raises $54M in IPO

THE WOODLANDS, Texas — Compressco Partners LP has raised approximately $54 million before expenses from its initial public offering of about 2.7 million common units.

The limited partnership created by the oil and gas contractor Tetra Technologies Inc. said Wednesday that it increased the number of units in the IPO to 2.7 million from 2.5 million.

The offering was priced at $20 per unit, the midpoint of its expected range of $19 to $21 per unit.

Compressco said earlier this month that it planned to use the offering's net proceeds to pay off debt, financing fees and transaction costs related to a new revolving credit line, and for working capital purposes.

Compressco is giving the underwriters a 30-day option to buy up to an additional 400,500 units to cover any excess demand.

Compressco will start trading on the Nasdaq on Wednesday under the "GSJK" ticker symbol.

The offering is expected to close on Monday. Tetra will own a 2 percent general partnership interest, a majority of the company's outstanding equity and own and control Compressco's general partner once the offering is complete.