Oct 18 (Reuters) - U.S. refining company Marathon Petroleum Corp plans to sell 15 million units in an initial public offering of its pipeline and processing master limited partnership (MLP), with pricing seen at $19 to $21 per share, according to a regulatory filing on Thursday.
MLPs are popular with energy companies in part because the structures pay little or no taxes. And investors in the publicly traded units see higher yields, a big draw in a time of very low interest rates.
Marathon Petroleum’s MLP, which will trade under the symbol “MPLX,” on the New York Stock Exchange, will own, operate and acquire crude oil and refined product pipelines and processing assets, the Findlay, Ohio-based company said in a filing with the U.S. Securities and Exchange Commission.
MPLX will grant the deal’s underwriters a 30-day option to purchase up to an additional 2.25 million units at the IPO price to cover over-allotments, if any.
UBS Investment Bank, BofA Merrill Lynch, Morgan Stanley, Citigroup and J.P. Morgan are acting as joint book-running managers for the offering.