Alon USA Partners Completes IPO
DALLAS -- Alon USA Energy Inc.'s subsidiary, Alon USA Partners, has completed its initial public offering (IPO) of 10 million units. In addition, the company announced that the underwriters for the IPO, Goldman, Sachs & Co.; Credit Suisse Securities LLC; and Citigroup exercised an option to purchase an additional 1.5 million units.
Hence, Alon Partners earned gross proceeds of $184 million via the IPO for its parent company. According to Alon USA, it used approximately $171.1 million of the net proceeds to reduce its $450 million term loan that closed on Nov. 13.
Following the IPO and subsequent unit sale to the underwriters, Alon USA Energy now owns an 81.6-percent limited partner interest and a 100-percent general partner interest in Alon Partners.
Alon Partners is a master limited partnership that was formed to own, operate and grow its oil refinery in Big Spring, Texas, with total throughput capacity of 70,000 barrels per day, as well as a related petroleum products marketing business.
Alon Partners sold each unit of its stock to the general public for $16. The IPO went public on Nov. 20 on the New York Stock Exchange under the ticker symbol ALDW. The stock sold for $18.81 per unit in this morning's trade.
Alon USA Energy Inc. is the largest 7-Eleven licensee in the United States and operates approximately 300 convenience stores in Texas and New Mexico.