CVR Energy sets $47.55 price for $500M stock offering

• CVR Energy (CVI) priced an underwritten public offering of 10.5M newly issued common shares at $47.55 a piece, expecting to raise ~$490M to help fund its planned acquisition of two refineries and a related marketing business from Marathon Petroleum (MPC).
• The underwriters have also been granted a 30-day option to purchase up to an additional 1.58M shares.
• Net proceeds, together with cash on hand and funds from related financing transactions, to finance the acquisition, redeem its outstanding 5.75% senior notes due 2028 and pay related fees and expenses.
• The offering is expected to close on November 5.
• The offering does not include shares being sold by IEP Energy Holding, the company's controlling shareholder, and is not conditional on completion of the acquisition. If the acquisition does not close, CVR Energy (CVI) plans to use the proceeds for general corporate purposes.
• CVR Energy (CVI) fell nearly 13% on Tuesday, as investors weighed its proposed $4.2B acquisition of two Marathon Petroleum refineries and stock offering, which raised dilution concerns, despite record Q3 results.

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