CVR Energy sells new shares at $47.55 to fund its Marathon refinery purchase
The offering has closed, and underwriters hold a 30-day option on up to 1,577,287 more shares, while part of the money will redeem the company's 5.750% notes due 2028.
CVR Energy has sold 10,515,248 new shares at $47.55 each, with net proceeds to the company of about $490.0m. The offering has closed.
The money, together with cash on hand and other financing, will pay for the St. Paul Park and Mandan refineries and related marketing and logistics assets that CVR is buying from Marathon Petroleum subsidiaries. It will also redeem CVR's 5.750% senior notes due 2028.
The sale changes how the deal is funded. Ordinary equity now carries more of the load.
Existing shareholders pay for that in dilution, with more than 10.5 million new shares added. Redeeming the 2028 notes should lower future interest expense, but the share count rises as the company takes on the acquisition.
The underwriters have 30 days to buy up to 1,577,287 additional shares. If they use the option, dilution would be larger still.
© Raydn · raydn.us
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