This week’s calendar lists five deals. They expect to raise $1.65 billion. That’s great traffic when you compare these numbers to the last 10-year weekly average of 3.5 IPOs raising $800,000, according to the U.S. Securities and Exchange Commission filings.
Topping the “most wanted” list (according to the IPO experts) are CVR Refining, LP (CVRR – proposed), SunCoke Energy Partners, L.P. (SXCP – proposed) and USA Compression Partners LP (USAC – proposed) – all are expected to generate high yields.
Crude, Coke and Gas
CVR Refining plans to price 20 million common units at $24 to $26 each on Wednesday evening for trading Thursday morning on the New York Stock Exchange. Its proposed symbol is “CVRR.” The joint-lead managers are Credit Suisse and Citigroup. The co-managers are Barclays, UBS Investment Bank, Jefferies, J.P. Morgan, Macquarie Capital and Simmons.
Based in Sugarland, Texas, CVR Refining is an independent downstream energy limited partnership with crude oil refining and related logistics assets operating in Kansas and Oklahoma. Here are the kickers:
Income: Its preliminary prospectus stated: “Based upon our forecast for the twelve months ending December 31, 2013, and assuming the board of directors of our general partner declares distributions in accordance with our cash distribution policy, we expect that our aggregate distributions for the twelve months ending December 31, 2013, will be approximately $696.9 million, or $4.7215 per common unit.”
And “Icahn Enterprises, L.P. has indicated that it or its affiliates may purchase in this offering up to $100.0 million, or up to approximately 4,000,000 (based on the midpoint of the price range set forth on the cover page of this prospectus), of our common units at the same price as the price to the public. The underwriters will not receive any underwriting discounts or commissions or structuring fees.”
CVR Refining plans to sell all of the common units and expects to have about 147.6 million units outstanding after the offering.
SunCoke Energy Partners plans to price 13.5 million shares at $19 to $21 each on Thursday evening for trading Friday morning on the New York Stock Exchange. Its proposed symbol is “SXCP.” The joint-lead managers are Barclays, BofA Merrill Lynch, Citigroup, Credit Suisse and J.P. Morgan. The co-managers are Evercore Partners, Goldman Sachs, RBC Capital Markets and UBS Investment Bank.
Based in Lisle, Illinois, SunCoke is a provider of coke used in steelmaking. The limited partnership was recently formed.
Income: The preliminary prospectus stated the company plans to make pay a minimum quarterly cash distribution of $0.4125 per common unit ($1.65 per common unit on an annualized basis) to yield 8.25 percent based on the mid-point of its price range.
SunCoke plans to sell all of the shares in the offering and expects to have about 15.7 million common units outstanding after the offering.
USA Compression Partners plans to price 10 million common units at $19 to $21 each on Monday evening for trading Tuesday morning on the New York Stock Exchange. Its proposed symbol is “USAC.” The joint-lead managers are Barclays Capital, Goldman Sachs, J.P. Morgan and Wells Fargo Securities. The co-managers are Raymond James, RBC Capital Markets, UBS Investment Bank and Evercore Partners.
Based in Austin, Texas, USA Compression Partners is a provider of natural gas compression services. The company was formed in 2008. It has about 227 employees.
Income: The preliminary prospectus stated the company plans to pay a minimum quarterly cash distribution of $0.425 per common unit ($1.70 per common unit on an annualized basis) to yield 8.5 percent based on the mid-point of its price range.
USA Compression plans to sell all of the common units and expects to have about 14 million common units outstanding after the offering.
Data Storage and Dream Vacations
The rest of the IPOs on the week’s calendar have attracted some interest as well. They are:
CyrusOne is a Cincinnati Bell subsidiary that owns and operates third-party data center properties in the United States and overseas, which house clients’ servers, storage and networking equipment.
The company plans to price 16.5 million shares at $16 to $18 each on Thursday evening for trading Friday morning on the NASDAQ Global Market. Its proposed symbol is “CONE.” The joint-lead managers are Morgan Stanley and BofA Merrill Lynch. The co-managers are Deutsche Bank Securities, Barclays, Citigroup, KeyBanc Capital Markets, RBS Securities and UBS Securities.
Income: The preliminary prospectus stated the company plans to pay a quarterly dividend of 16 cents per share.
Worth noting: The company filed under an S-11 (real estate investment trust) and its preliminary prospectus stated: “We intend to elect to be taxed and to operate in a manner that will allow us to qualify as a real estate investment trust (“REIT”) for U.S. federal income tax purposes commencing with our tax year ending December 31, 2013.”
Norwegian Cruise Line Holdings (NCLH – proposed), the Bermuda-based cruise line, finally made it on the IPO calendar.
The company initially filed for an IPO on Oct. 26, 2010, as NCL Corporation, but that’s history.
The company plans to price 23.5 million shares at $16 to $18 each on Thursday evening for trading Friday morning on the NASDAQ Global Market. Its proposed symbol is “NCLH.” The joint-lead managers are UBS Investment Bank, Barclays, Citigroup, Deutsche Bank Securities, Goldman Sachs and J.P. Morgan. The co-managers are DNB Markets, HSBC, SunTrust Robinson Humphrey, Wells Fargo Securities and Apollo Global Securities.
That will bring us to next week.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.