Susser Petroleum jumps on NYSE debut
(Reuters) - Retail fuel distributor Susser Petroleum Partners LP's (SUSP.N) common units rose as much as 16 percent on market debut, a day after the company priced its initial public offering slightly below the top end of its expected range.
The limited partnership, formed by Susser Holdings Corp SUSS.O to distribute motor fuels, priced its IPO of 9.5 million common units at $20.50 each, raising $195 million.
It said it expects to use the proceeds to repay its parent company for capital expenditures and to buy about $147 million of securities to be used as collateral to secure a term-loan.
Texas-based Susser Petroleum, which filed in June for an IPO of up to $200 million, had said it expected to sell the units at between $19 and $21 per unit.
The company distributed 789.6 million gallons of motor fuel to its parents' Stripes convenience stores and 522.8 million gallons to other customers in 2011, according to its regulatory filing. It is among the largest distributors of Valero and Chevron branded motor fuel in the United States.
Susser Petroleum recorded a net income of $5.4 million on revenue of $2.2 billion for the half year ended June 30.
BofA Merrill Lynch, Barclays Capital, Wells Fargo Securities and UBS Securities were lead underwriters to the offering.
Other Texas-based energy companies such as Energy & Exploration Partners Inc and Alon USA Partners LP have also filed registration statements with U.S. regulators.
Susser Petroleum units closed up 12 percent at $22.91 on the New York Stock Exchange on Thursday.
(Reporting By Neha Dimri in Bangalore; Editing by Sreejiraj Eluvangal)
- Ukraine accuses Russia of "undisguised aggression" as rebels advance |
- Disruptive Hong Kong protests loom after China rules out democracy |
- Syrian army, rebels fight on Golan where peacekeepers held |
- European investors look past Ukraine, focus on ECB
- NATO to create new 'spearhead' force to respond to crises