VTTI Energy Partners LP, an MLP formed by VTTI to own refined product and crude oil terminals, announced terms for its IPO on Tuesday. The London, United Kingdom-based company plans to raise $350 million by offering 17.5 million units (100% insider) at a price range of $19 to $21. At the midpoint of the proposed range, the MLP would command a fully diluted market value of $821 million.
VTTI Energy Partners LP's parent, VTTI, was formed as an energy terminaling business in 2006 by Vitol Group, the world's largest independent energy trader. Vitol now owns a 50% stake in VTTI, having sold half of its interest to Malaysia-based energy logistics company MISC in 2010 for $735 million. The newly-formed MLP cites its relationship with Vitol and MISC as key competitive strengths.
VTTI Energy Partners LP, which was formed in 2014 and booked $302 million in historical sales for the 12 months ended March 31, 2014, plans to list on the NYSE under the symbol VTTI. Citi, J.P. Morgan, BofA Merrill Lynch, Credit Suisse, Deutsche Bank and Wells Fargo Securities are the joint bookrunners on the deal. It is expected to price during the week of July 28, 2014.
