AP News

Phillips 66 Partners IPO aims to raise up to $315M

HOUSTON (AP) — Phillips 66 Partners LP, a subsidiary of refining and pipeline company Phillips 66, is seeking to raise as much as $315 million in its initial public offering of stock.

Phillips 66 said Monday that it plans to sell 15 million shares of the unit for $19 to $21. The banks managing the deal could buy another 2.3 million shares, adding to the proceeds.

Phillips 66 formed Phillips 66 Partners in February to operate and acquire pipelines, terminals and storage systems. The company expects to operate initially in Illinois, Louisiana and Texas.

The offering represents a 20.9 percent limited partner interest in Phillips 66 Partners, or a 24 percent limited partner interest if the bankers in charge of the deal buy all the extra stock. Phillips 66 will own the remaining limited partner interest in Phillips 66 Partners, as well as its 2 percent general partner interest.

A master limited partnership is publicly traded and gets most of its cash flow from real estate, natural resources and commodities. There are tax benefits in those partnerships that some investors find attractive.

The units are expected to trade on the New York Stock Exchange under the ticker symbol "PSXP."

Shares of Houston-based Phillips 66 slipped 8 cents to $59.01 in morning trading.

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