Alon Subsidiary Goes Public
DALLAS -- Alon USA Energy Inc. priced an initial offering of 10 million units of its subsidiary, Alon USA Partners LP, at $16 per unit last night. This morning, Alon USA Partners began trading via an initial public offering (IPO) on the New York Stock Exchange under the symbol ALDW.
Alon Partners, operating as a master limited partnership, owns and operates a crude oil refinery in Big Spring, Texas, with a throughput capacity of approximately 70,000 barrels per day. The company also owns a related petroleum products marketing business.
Alon USA Energy hopes to raise up to $160 million in the IPO. It stated in a news release it will use the net proceeds of the IPO to reduce its $450-million term loan that closed on Nov. 13.
In addition to the 10 million shares offered to the public, underwriters of the IPO, including Goldman, Sachs & Co.; Credit Suisse Securities LLC; and Citigroup, have a 30-day option to purchase an additional 1.5 million units of Alon Partners.
If the underwriters fully exercise that option, Alon USA Energy will own an 81.6-percent limited partners interest and a 100-percent general partner interest in Alon Partners.
According to Alon USA Energy, the IPO is expected to close on Nov. 26.
Alon Partners common units traded above $17 per units in this morning's trade.
As of Oct. 30, Alon USA Energy Inc. operates 299 ALON-branded convenience stores.