Valero Energy Partners LP, a limited partnership formed by Valero Energy Corp. (NYSE: VLO), has begun an initial public offering (IPO) of 15 million common units representing limited partner interests pursuant to a registration statement on Form S-1 previously filed with the US Securities and Exchange Commission.
Underwriters of the offering are expected to be granted a 30-day option to purchase up to an additional 2,250,000 common units from Valero Energy Partners. The common units will trade on the New York Stock Exchange under the ticker symbol "VLP."
The common units being offered represent a 25.5% limited partner interest in Valero Energy Partners, or a 29.4% limited partner interest if the underwriters exercise in full their option to purchase additional common units. Valero, through certain of its subsidiaries, will own the remaining limited partner interests in Valero Energy Partners, as well as the 2% general partner interest.
JP Morgan, Barclays, Citigroup, RBC Capital Markets, and Wells Fargo Securities are acting as joint book-running managers for the offering. Mitsubishi UFJ Securities, SunTrust Robinson Humphrey, Credit Agricole CIB, Credit Suisse, Jefferies, Mizuho Securities, RBS, and Scotiabank/Howard Weil are acting as co-managers.