Arc Logistics Partners LP estimates its six million unit IPO will price between $19 and $21 a unit.
The oil-storage and terminal company earlier this month unveiled plans for an IPO of up to $100 million to help fund an acquisition and reduce debt.
Arc Logistics, which is controlled by an entity fully owned by Lightfoot Capital Partners, plants to use a portion of the proceeds from the offering to buy GE Energy Financial Services’ interest in a liquefied natural gas facility in Mississippi.
The company’s initial asset base will consist of 14 terminals in nine states located on the Gulf Coast, on the East Coast and in the Midwest. The facilities have about five million barrels of crude and petroleum product storage capacity, it said. It will also include two rail transloading facilities near Mobile, Ala.
After the offering, all of the officers that will be responsible for managing Arc Logistics are officers of Lightfoot, the company said in a filing.
For the six months ended June 30, Arc Logistics reported its profit more than doubled to $20.8 million on a pro form basis though revenue slipped 29% to $24.3 million,
The company has been approved to list its units on the New York Stock Exchange under the symbol “ARCX.”