DALLAS -- Alon USA Energy Inc. announced earlier this week that its subsidiary, Alon USA Partners LP, a Delaware limited partnership, has closed its initial public offering (IPO) of 10 million common units representing limited partner interests in Alon Partners at $16 per common unit. In connection with the IPO, the underwriters exercised in full their option to purchase an additional 1.5 million common units from Alon Partners. As a result, the total IPO size was 11.5 million common units and total gross proceeds were $184 million.
Alon USA used approximately $171.1 million of the net proceeds of the offering to reduce its $450 million term loan that closed on Nov. 13, 2012. Alon USA owns an 81.6% limited partner interest and a 100% general partner interest in Alon Partners.
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 (bpd), and the related petroleum products marketing business.
Alon USA Energy, Dallas, is an independent refiner and marketer of petroleum products, operating primarily in the south central, southwestern and western regions of the United States. The company directly owns crude oil refineries in California, Louisiana and Oregon, with an aggregate crude oil throughput capacity of approximately 180,000 barrels per day. Alon USA also owns 100% of the general partner and approximately 82% of the limited partner interests in Alon USA Partners, which owns a crude oil refinery in Texas with an aggregate crude oil throughput capacity of approximately 70,000 bpd. Alon USA is the largest 7-Eleven licensee in the United States and operates approximately 300 convenience stores in Texas and New Mexico.
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