Tesoro Logistics Raises $273 Million in Expanded Share Sale

Tesoro Logistics LP, the limited partnership formed by Tesoro Corp. to operate oil storage facilities, raised $273 million in an expanded initial public offering after pricing the units at the top of the range.

The San Antonio-based company sold 13 million common units at $21 each after offering 12.5 million for $19 to $21 apiece, according to a filing with the U.S. Securities and Exchange Commission and data compiled by Bloomberg.

Tesoro Corp. follows CVR Energy Inc. and Golar LNG Ltd. in selling assets to the public through initial offerings this year. Tesoro is the second-largest independent refiner in the U.S., and the partnership that sold the units in the offering today owns a pipeline supplying a North Dakota refinery with crude and terminals for shipping finished products away from plants in five states, according to the prospectus.

Proceeds from the IPO will be used to reimburse the parent for capital expenditures on assets, according to the share-sale document. Tesoro Logistics plans to make quarterly distributions to investors equivalent to $1.35 per unit annually, it said.

The offering was led by Citigroup Inc. (C), Wells Fargo & Co. (WFC), Bank of America Corp. (BAC) and Credit Suisse Group AG. (CSGN) The underwriters may exercise an overallotment option to buy an additional 1.88 million units, the prospectus said. The shares will trade on the New York Stock Exchange under the symbol TLLP.

To contact the reporter on this story: Lee Spears in New York at lspears3@bloomberg.net.

To contact the editor responsible for this story: Jennifer Sondag at

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