Alon USA (ALJ) Subsidiary Alon Partners (ALDW) Closes 10M IPO at $16/Unit

November 26, 2012 4:58 PM EST
Alon USA Energy, Inc. (NYSE: ALJ) reports that its subsidiary, Alon USA Partners, LP, a Delaware limited partnership ("Alon Partners") (NYSE: ALDW), has closed its initial public offering of 10,000,000 common units representing limited partner interests in Alon Partners at $16.00 per common unit. In connection with the initial public offering, the underwriters exercised in full their option to purchase an additional 1,500,000 common units from Alon Partners. As a result, the total initial public offering size was 11,500,000 common units and total gross proceeds were $184 million. Alon USA used approximately $171.1 million of the net proceeds of the offering to reduce its $450 million term loan that closed on November 13, 2012. Alon USA owns an 81.6% limited partner interest and a 100% general partner interest in Alon Partners.

Alon Partners was formed by Alon USA to own, operate and grow its strategically located crude oil refinery in Big Spring, Texas, with total throughput capacity of approximately 70,000 barrels per day, and the related petroleum products marketing business.

Goldman, Sachs & Co., Credit Suisse Securities (USA) LLC and Citigroup acted as joint book-running managers, Jefferies & Company, Inc. acted as lead managing underwriter, and Macquarie Capital (USA) Inc. and Tudor, Pickering, Holt & Co. Securities, Inc. acted as co-managers.

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