Breitburn will issue $350 million of perpetual convertible preferred units to EIG at a price of $7.50.

It will also issue $650 million worth of senior secured notes, due May 2020, at 9.25% per year in interest, Breitburn said in a statement.

Breitburn added that it expects to use the net proceeds from the private offerings of approximately $938 million to repay borrowings under its credit facility, resulting in net borrowings, at closing, of approximately $1.24