The following is an excerpt from ANDREW BARY | July 25, 2012 | Barrons.com |
An initial public offering expected later today from Northern Tier Energy offers investors a high-yielding play on the hot oil-refining sector.
The company, which plans to sell 16.25 million units at a price of $19 to $21 a share through an underwriting group led by Goldman Sachs, is aiming to pay distributions of $2.65 a share over the next year, or a 13% yield at the midpoint of the pricing range. Investors, however, may be balking at the deal, and there’s talk the pricing could occur in the midteens.
Northern Tier is an investment rarity: a master limited partnership that …
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