Valero Energy Corp.’s pipeline and storage unit has launched an initial public offering of 15 million shares of common stock — the company’s second spinoff this year.
Valero Energy Partners LP expects the IPO price for the master limited partnership will be between $19 and $21 per common unit, which would raise between $285 million and $315 million, according to documents filed Monday with the Securities and Exchange Commission.
The SEC filing set the proposed maximum aggregate offering price at $362 million. However, the document didn’t specify the date the company’s units will begin trading.
Valero Energy Partners LP is expected to trade on the New York Stock Exchange under the symbol “VLP.”
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Its assets include pipeline and terminals for crude oil and refined petroleum products near Valero’s refineries in Port Arthur, Sunray and Memphis, Tenn. Valero Energy Partners will enter into master transportation and terminal services agreements with Valero for its pipelines and terminals.
San Antonio-based Valero, the nation’s largest independent refiner, in September filed to spin out a master limited partnership for its logistics assets.
For the six months ended June 30, the partnership was calculated to have had revenue of $46.4 million and net income of $22.7 million.
The 15 million common units represent a 25.5 percent limited partner interest in Valero Energy Partners. If underwriters exercise their option to purchase another 2.25 million common units, it will push limited partner ownership to 29.4 percent.
Valero and its subsidiaries will own the remaining limited partner interests in Valero Energy Partners, as well as a 2 percent general partner interest.
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Valero Energy CEO Bill Klesse said earlier this year that the refining company was considering forming a logistics-based partnership.
This year, Valero also spun off its retail stores to form CST Brands Inc., which immediately ranked second among North America’s publicly traded sellers of fuel and convenience store merchandise.
Also, in 2011, another homegrown refiner, Tesoro Corp., spun off part of its logistics business in an initial public offering creating Tesoro Logistics LP, also a publicly traded master limited partnership.
Express-News archives contributed to this report.