CVR seeks to raise $250 M
CVR Energy Inc. is seeking to sell enough CVR Partner LP units to raise $250 million, according to its registration statement filed with the U.S. Securities and Exchange Commission. CVR Energy intends to use the after-tax proceeds of the offering primarily to pay a special dividend to CVR Energy stockholders, and also to strengthen CVR Energy’s balance sheet. CVR Energy currently owns CVR Partners’ general partner and approximately 70 percent of its common units.
Based on the closing price of CVR Partner units on March 6 ($24.96 per unit), the day of the filing, the $250 million would equate to about 10 million units. Based on these figures, CVR Energy would still be expected to retain control of the LP.