VTTI IPO Preview July 2014

VTTI Energy Partners, LP (ticker VTTI) is currently out on its IPO roadshow and looking to raise $350 million by selling 17.5 million common units (before the over-allotment) at a mid-point price of $20 with an indicated mid-point yield of 5.25%. They expect to price the deal Thursday July 31. VTTI is a fee-based, growth-oriented limited partnership formed in April 2014 by VTTI, one of the world’s largest independent energy terminaling businesses, to own, operate, develop and acquire refined petroleum product and crude oil terminaling and related energy infrastructure assets on a global scale. VTTI’s initial assets consist of a 36% interest in VTTI Operating, which owns a portfolio of 6 terminals with 396 tanks and 35.5 million barrels of refined petroleum product and crude oil storage capacity located in Europe, the Middle East, Asia, and North America. Its network of terminal facilities represents one of the largest independent portfolios of refined petroleum product and crude oil terminaling assets in the world when measured by total storage capacity. Since inception in 2006, the parent VTTI has increased its operating storage capacity by 47.6 million barrels through a balance of organic development projects, greenfield construction and third party acquisitions. Capitalizing on its relationship with VTTI and its owners, Vitol and MISC, the partnership intends to continue its growth through acquisitions from VTTI or third parties, organic development opportunities, greenfield construction and optimization of existing assets, and has a management team dedicated to executing this growth strategy.

IMPORTANT: VTTI will provide investors with a 1099-DIV (instead of a K-1), which means, yes, you can buy it in any tax advantaged account and not have to worry about possible UBTI issues.

About Philip Trinder

President of MLP Protocol, investor, trader, and proponent of Master Limited Partnerships.
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