Alon USA Partners Sees IPO Premium

Energy

Published: November 20, 2012 10:04 am

Alon USA Energy Inc. (NYSE: ALJ) is enjoying a gain for its Alon USA Partners L.P. (NYSE: ALDW) initial public offering. The limited partnership was priced with 10,000,000 common units at $16 per unit. Alon Partners was formed by Alon USA to own, operate and grow its strategically located crude oil refinery in Big Spring, Texas, with total throughput capacity of approximately 70,000 barrels per day, and the related petroleum products marketing business.

The partnership intends to use the net proceeds of the offering to reduce its $450 million term loan, and Alon USA will own an 84.0% limited partner interest in Alon Partners. If the overallotment is taken in full, it will be an 81.6% limited partner interest ownership. Alon USA will own 100% of the general partner interest in Alon Partners.

Goldman Sachs, Credit Suisse Securities and Citigroup were acting as joint book-running managers in this offering. Jefferies & Company is acting as lead managing underwriter, and Macquarie Capital and Tudor Pickering Holt & Co. were the co-managers. The underwriters have an overallotment option to purchase an additional 1,500,000 common units in full.

The price on these units is now around $17.50 with nearly 3 million units changing hands.

JON C. OGG

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