IPO Preview: Susser Petroleum Partners LP
Based in Houston, TX, Susser Petroleum Partners LP (SUSP) scheduled a $190 million IPO with a market capitalization of $440 million at a price range mid-point of $20 for Thursday, September 20, 2012.
Seven IPOs are scheduled for the week of September 17. Full IPO calendar available here.
SUSP S-1 filed September 10, 2012.
Manager / Joint Managers: BofA Merrill Lynch/ Barclays/ Wells Fargo / UBS.
Co Managers: RBC Capital / Raymond James/ BMO Capital / Baird/ Janney Montgomery.
SUSP is a Delaware limited partnership formed by Susser Holdings Corporation, or SHC, to engage in the primarily fee-based wholesale distribution of motor fuels to SHC and third parties.
The cash payout % estimate looks healthy at 8.8%, culminating in an 87% payout ratio for the 12 months ending September 2013.
But SUSP's margins are razor thin. For the six months ended June 2012, margins were the following: gross margin, 1.3%; profit margin: .8%; EBITDA, 1%.
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