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Sunoco unit files IPO
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October 22, 2001: 3:32 p.m. ET
Oil refiner's unit registers 5M-unit IPO, United Defense in $300M offering.
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NEW YORK (CNNmoney) - Sunoco Logistics Partners L.P., a unit of oil refiner Sunoco Inc., filed Monday with the Securities and Exchange Commission to go public.
Philadelphia-based Sunoco Logistics plans to sell 5 million common units. As a limited partnership, the company plans to pay a dividend of 45 cents a quarter, or $1.80 annually, Sunoco said in the filing.
Sunoco Logistics warned in the filing that it may not have sufficient cash to pay the minimum quarterly distributions. The IPO includes a green shoe under which the underwriters can purchase an over-allotment of 750,000 common units.
Sunoco Logistics has yet to set a unit price but the offering assumes an IPO price of $20 a unit, the company said in the filing. Sunoco Logistics will list on the New York Stock Exchange but has not set a ticker symbol. Lehman Brothers is bookrunner on the deal.
Sunoco Inc. recently formed the company to operate and own a substantial portion of its crude oil and refined product pipeline in the eastern and midwestern United States. Parent Sunoco (SUN: down $0.31 to $36.68, Research, Estimates), an oil refiner, will act as general partner.
A military IPO
United Defense Industries Inc. of Arlington, Va., also filed Monday to raise as much as $300 million in an IPO via lead underwriters Lehman Brothers and Goldman Sachs. The company has yet to set the number of shares it will offer or their price. Such information will come in future filings.
United Defense plans to trade on the New York Stock Exchange but must still pick a ticker symbol.
United Defense designs and develops combat vehicles, artillery, naval guns, missile launchers and precision munitions used by the U.S. Department of Defense.
The company has over 60 years of experience and is a prime contractor on a number of U.S. military programs. In October 1997, investment firm the Carlyle Group acquired United Defense for $850 million. The Carlyle Group Holdings LLC owns 96 percent of the United Defense before the IPO.
United Defense reported $914 million in revenue on $1.7 million in losses for the nine months ended Sept. 30. The company had $1.2 billion in revenue on adjusted earnings before taxes (EBITDA) of $163 million for the year ended Sept. 30. 
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