Valero (VLO) is on of the leading energy refiners in the world, has been around forever and is a stable, well run company. This deal is for an LP servicing arm, Valero Energy Partners (VLP). The highlight of the deal is a proposed yield of just over 4% at the $20 mid-point of the proposed price range.
The initial assets of the LP consist of three clusters of pipeline and storage facilities. Over time there may be additional drop downs of assets from VLO to VLP which would create further growth. Six additional assets are described in the roadshow . . .