UPDATE 1-Regency Energy prices offering at discount, shares dip

* Says to offer 10.5 mln common units at $19.12 each

* Intends to use net proceeds to repay debt

* Shares fall 6 percent

Dec 2 (Reuters) - Regency Energy Partners LP RGNC.O, a natural gas processor and pipeline operator, said it would publicly offer 10.5 million common units at $19.12 apiece, about 4 percent discount to the units' close on Tuesday.

Shares of the company were down 5 percent at $18.90 in morning trade on Nasdaq.

Regency said it intends to use net proceeds from the offering to repay debt.

The Dallas-based company has granted an over-allotment option of 1.6 million common units to its underwriters.

UBS Investment Bank, BofA Merrill Lynch, J.P. Morgan, Morgan Stanley and Wells Fargo Securities are joint book-running managers for the offering, Regency said. (Reporting by Krishna N. Das in Bangalore; Editing by Gopakumar Warrier) ((Krishna.das@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: Krishna.das.reuters.com@reuters.net))