Phillips 66 Partners Launches Initial Public Offering
Phillips 66, through subsidiaries, will own remaining, majority limited-partner interest
Published in CSP Daily News
HOUSTON -- Phillips 66 Partners LP, a limited partnership and subsidiary of Phillips 66, has launched its initial public offering (IPO) of 15 million common units, representing limited-partner interests. The common units are expected to trade on the New York Stock Exchange (NYSE) under the ticker symbol "PSXP."
The underwriters of the offering will have a 30-day option to purchase up to an additional 2.25 million common units from Phillips 66 Partners to cover over-allotments, if any.
The offering represents a 20.9% limited partner interest in Phillips 66 Partners, or a 24% limited partner interest if the underwriters exercise in full their option to purchase additional common units. Phillips 66, through certain of its subsidiaries, will own the remaining, majority limited partner interest in Phillips 66 Partners, as well as its 2% general partner interest.
J.P. Morgan, Morgan Stanley, BofA Merrill Lynch, Barclays, Credit Suisse, Deutsche Bank Securities, Citigroup and RBC Capital Markets are acting as book-running managers for the offering. RBS, DNB Markets, Mitsubishi UFJ Securities, Mizuho Securities and PNC Capital Markets LLC are acting as co-managers.
Phillips 66 Partners is a growth-oriented master limited partnership formed by Phillips 66 to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum product and natural gas liquids pipelines and terminals and other transportation and midstream assets. Based in Houston, the partnership's assets include the Clifton Ridge crude oil pipeline, terminal and storage system in Louisiana; the Sweeny to Pasadena refined petroleum product pipeline, terminal and storage system in Texas; and the Hartford Connector refined petroleum product pipeline, terminal and storage system in Illinois.