You are here
EL PASO, Texas – Western Refining Inc. completed the spinoff via an initial public offering of Western Refining Logistics LP. More than 15 million shares were sold to the general public at the price of $22 per share.
Western Refining Logistics LP is a fee-based, growth-oriented master limited partnership (MLP) recently formed by Western Refining Inc. to own, operate, develop and acquire crude oil and refined products terminals, storage tanks, pipelines and other logistics assets. El Paso, Texas-based Western Refining Logistics' assets include approximately 300 miles of pipelines, approximately 7.9 million barrels of active storage capacity, and other assets in the Southwest.
Western Refining still owns a 65-percent stake in Western Refining Logistics, which trades on the NASDAQ National Market under the symbol WNRL. Shares traded for $23.60 per share during this morning’s trade.
Net proceeds received by WNRL totaled approximately $325 million, after deducting the underwriting discount and structuring fee, but before taking into account estimated offering expenses. WNRL will retain $75 million to fund organic growth projects and distribute approximately $245 million to Western Refining Inc. In addition, WNRL entered into a $300 million syndicated revolving credit facility.
Several convenience and petroleum retailing companies have created MLPs that currently trade on the NYSE, including Speedway LLC parent company Marathon Petroleum Corp.; MAPCO Express parent Delek US Holdings Inc.; Alon USA Energy Inc.; Stripes parent Susser Holdings Corp.; Phillips 66; and Tesoro Corp. Valero Energy Corp. also filed a S-1 registration statement with the U.S. Securities and Exchange Commission on Sept. 20 to spin off its midstream business into an MLP.
Western Refining Inc.'s retail division operates 222 convenience stores and gas stations under the GIANT, Mustang, Sundial and Howdy's banners.