Bloomberg News

CVR Refining Seeks $520 Million in Initial Public Offering

January 08, 2013

CVR Refining LP (CVRR:US), the U.S. oil refiner controlled by billionaire investor Carl Icahn, increased the fundraising target for its initial public offering to as much as $520 million.

CVR Refining LP will offer 20 million units for $24 to $26 each, the Sugarland, Texas-based partnership said today in a filing with the U.S. Securities and Exchange Commission. The offering values the company at as much as $3.84 billion, according to calculations by Bloomberg. Gross proceeds may reach $598 million at the maximum offer price should banks handling the sales exercise their option to buy another 3 million shares, according to the filing.

Icahn Enterprises LP said it may buy units worth as much as $100 million, according to the filing. CVR Energy Inc. (CVI:US) announced plans for an IPO for its refineries Oct. 1 after failing to find a buyer for the plants.

CVR Refining owns a 115,000 barrel-a-day refinery in Coffeyville, Kansas, and a 70,000 barrel-a-day refinery in Wynnewood, Oklahoma, as well as oil pipelines, tanks and a fuel- sales business, according to the filing. In October, it estimated gross proceeds of the offering at $300 million.

Proceeds will be used to buy back $255 million of debt at the Kansas unit, fund some capital expenses for maintenance and environmental improvements through 2014, and pay fourth quarter 2012 maintenance expenses at the Wynnewood refinery, according to the filing.

CVR Energy will own 86 percent of the partnership and control it through ownership of its general partner after the IPO, according to a statement today.

Credit Suisse Group AG (CSGN), Citigroup Inc. (C:US), Barclays Plc (BARC), UBS AG (UBSN) and Jefferies Group Inc. (JEF:US) are handling the sale, according to the statement.

The shares will be listed with the symbol CVRR on the New York Stock Exchange.

To contact the reporter on this story: Jim Polson in New York at

To contact the editor responsible for this story: Susan Warren at

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