The New York Stock Exchange IPO of Delek Logistics Partners LP (NYSE: DKL) on Thursday was a success, with the company raising a gross $168 million at a company value of $513 million. Delek Logistics, a unit of Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG) unit Delek US Holdings Inc. (NYSE:DK), issued eight million participation units at $21 per share. The company issued 32.7% of its share capital.
The underwriters have a 30-day option to purchase up to an additional 1,200,000 units at the same price, less underwriting discounts, to cover over-allotments, if any. Affiliates of Delek US will hold a 2% general partner interest and a 65.3% limited partner interest in Delek Logistics.
Delek Logistics' initial assets are: 200 miles of transportation pipelines and a 600 mile crude oil gathering system, and associated storage facilities with 1.4 million barrels of active shell capacity supporting Delek US’ El Dorado and Tyler refineries; the 185-mile Paline pipeline from Longview to Nederland, Texas; Delek US’ wholesale marketing business in Texas; and five light product terminals - the Abilene, Big Sandy and San Angelo terminals in Texas and the Nashville and Memphis terminals in Tennessee.
Bank of America Merrill Lynch, Barclays Bank, Goldman Sachs & Co., and Wells Fargo Securities are the joint book-running managers for the IPO, and Deutsche Bank Securities, Raymond James and Simmons & Company International are the co-managers.
Delek Logistics' share price rose 6.4% on Friday to $22.35.
Published by Globes [online], Israel business news - www.globes-online.com - on November 4, 2012
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