CVR Energy Launches $750M Stock Offering, $250M of It Secondary From Icahn Entity
CVI has more than doubled off its 52-week low of $19.62.
Summary
CVR Energy is selling $500 million of new common stock and Icahn Enterprises' subsidiary IEP Energy Holding is selling $250 million of existing shares, $750 million total, with a 30-day option for up to $112.5 million more. None of the secondary proceeds go to the company. The primary cash is earmarked to fund the $4.2 billion St. Paul Park and Mandan refinery purchase from Marathon Petroleum and MPLX announced this morning, plus redemption of the 5.750% notes due 2028. The offering is not conditioned on the acquisition closing, and the acquisition is not conditioned on the offering. The equity raise dilutes existing holders and the controlling stockholder selling into it is a negative read for near-term supply; pricing terms and the discount to the $55.96 last sale are not yet disclosed.
At the time of this announcement, CVI was trading at $55.96 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $5.6B. The 52-week trading range was $19.62 to $63.51. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: BusinessWire.