Company News

Alon USA Partners’ IPO Raises $160 Million

Share price increases more than $1 a day later

DALLAS -- Shares of Alon USA Partners LP rose more than 9% in their market debut on Tuesday, a day after the company priced its initial public offering of 10 million shares at $16 each, according to a Reuters report.

The pricing was significantly below the company's expected price range of $19 to $21 per share.

Alon USA Partners, a unit of Alon USA Energy Inc., was formed to own and operate its parent's refining and petroleum marketing business in south central and southwestern regions of the United States.

The Dallas-based company had filed with the U.S. Securities and Exchange Commission in August to raise up to $230 million in an IPO.

Goldman Sachs & Co., Credit Suisse and Citigroup are acting as lead underwriters to the offering.

The company, which reported net income of $268.7 million on revenue of $2.65 billion for the nine months ended Sept. 30, plans to use the proceeds from the offering to repay debt and for capital-expenditure purposes.

The company's shares were trading at $17.29 on Tuesday morning on the New York Stock Exchange.

The firm is the 10th master limited partnership (MLP) to go public since the beginning of August. Investors have said the popularity of the offerings is tied to the higher-than-average yields offered by MLPs at a time when bond yields remain near historic lows.

See “Related Content” below for a complete report on how master limited partnerships are affecting the petroleum-retail market.

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