Phillips 66 Partners, the master limited partnership slated to debut on the New York Stock Exchange Tuesday, is expected to price near or at the top of the range of its initial public offering, as noted in MarketWatch.
The company’s IPO “is multiple times oversubscribed,” IPO Boutique said. The books closed on Friday and the stock is seen trading in the $19 to $21 range. The company is selling 15 million shares.
One of the country’s largest master limited partnerships in 2013
Phillips 66 Partners was formed with pipeline and other logistics and transportation assets of refiner Phillips 66 (NYSE:PSX) itself spun off last year by ConocoPhillips COP. The MLP is the latest from a refining company, a path taken by Tesoro Corp. and others.
Phillips 66 (NYSE:PSX) filed for registration of the limited partnership in March, putting into motion the formation of what could be one of the country’s largest master limited partnerships in 2013.
Phillips 66 Partners Initial Assets
Phillips 66 Partners LP said its initial assets would include the Clifton Ridge crude oil pipeline, terminal and storage system in Louisiana; the Houston-area Sweeny to Pasadena refined petroleum product pipeline, terminal and storage system; and the Hartford Connector refined petroleum product pipeline, terminal and storage system in Illinois.
According to a Securities and Exchange Commission filing, the partnership said it expects Phillips 66 (NYSE:PSX) “will offer us opportunities to purchase additional transportation and midstream assets that it may acquire or develop in the future or that it currently owns.”
Expected to trade on the NYSE under the ticker symbol PSXP
The units are expected to trade on the New York Stock Exchange under the ticker symbol “PSXP,” and the underwriters have a 30-day option to purchase up to an additional 2.24 million units.
The IPO represents a 20.9 percent limited partner interest in Phillips 66 Partners, or a 24 percent interest if the underwriters exercise their option in full.
Houston-based Phillips 66 Partners was formed to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum product and natural gas liquids pipelines and terminals and other transportation and midstream assets.
JPMorgan Chase & Co. (NYSE:JPM), Morgan Stanley (NYSE:MS), Bank of America Merrill Lynch, Barclays PLC (NYSE:BCS) (LON:BARC), Credit Suisse Group AG (NYSE:CS), Deutsche Bank Securities, Citigroup Inc (NYSE:C) and RBC Capital Markets are acting as book-running managers for the offering. Royal Bank of Scotland Group plc (NYSE:RBS) (LON:RBS), DNB Markets, Mitsubishi UFJ Securities, Mizuho Securities Co Ltd (TYO:8606) and PNC Capital Markets LLC are acting as co-managers.