Susser Soars Amid NYSE Debut

Susser expects to use the proceeds to repay its parent company for capital expenditures.

Susser Petroleum Partners LP’s common units climbed as much as 16% on their market debut, a day after the company priced its initial public offering slightly below the top end of its expected range, Reuters reported.

Susser Petroleum Partners LP priced its initial public offering of 9,500,000 common units representing limited partner interests in Susser Petroleum Partners at $20.50 per common unit, raising $195 million.

The common units began trading on the New York Stock Exchange under the symbol SUSP beginning Sept. 20.

The offering is expected to close on Sept. 25, subject to customary closing conditions. The underwriters have been granted a 30-day option to purchase up to an additional 1,425,000 common units.

Upon the conclusion of the offering, the public will own a 43.4% limited partner interest in Susser Petroleum Partners, or a 49.9% limited partner interest if the underwriters exercise their option to purchase additional common units in full.

Susser expects to use the proceeds to repay its parent company for capital expenditures and to buy about $147 million of securities to be used as collateral to secure a term-loan, Reuters reported. Texas-based Susser Petroleum, which filed in June for an IPO of up to $200 million, had said it expected to sell the units at between $19 and $21 per unit.

 

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