(New throughout, adds details on JP Morgan offtake agreement)
Sept 22 Philadelphia Energy Solutions, a joint
venture part owned by Carlyle Group LP, disclosed plans
on Monday to sell shares in an oil rail unloading system it
built at the 335,000 barrel-per-day Philadelphia refinery it
took over two years ago.
The refinery, the largest on the U.S. East Coast, has used
the new unloading system to bring in less-expensive crude from
the booming Bakken shale fields. This has helped turn operating
deficits at the refinery into profits during the first half of
this year, according to the initial public offering filed with
Once a new rail track is complete next month, the unloading
capacity at the facility will go from 140,000 bpd to 210,000
bpd, or about 63 percent of the refinery's overall capacity, the
This train-unloading system would be the main asset of PES
Logistics Partners LP, a master-limited partnership whose main
customer will be the refinery.
The IPO filing disclosed details of Philadelphia Energy
Solution's offtake agreement with JP Morgan Chase & Co,
which is close to selling its physical commodities business to
Swiss trading house Mercuria.
The offtake agreement expires in September 2017, but can be
terminated with 90 days notice prior to Sept. 8, 2015 or Sept.
8, 2016, according to the filing.
Under the agreement, JP Morgan supplies nearly all of the
crude oil to the Philadelphia refinery and purchases nearly all
of its refined products.
BofA Merrill Lynch and Credit Suisse are underwriting the
IPO, PES Logistics told the U.S Securities and Exchange
Commission in a preliminary prospectus on Monday.
The filing included a fundraising target of about $250
The amount of money a company says it plans to raise in its
first IPO filings is used to calculate registration fees. The
final size of the IPO could be different.
(Reporting by Avik Das in Bangalore and Jarrett Renshaw in New
York; Editing by Maju Samuel, Jessica Resnick-Ault and