PBF Energy Inc. priced its previously announced underwritten public offering of six million shares of its Class A common stock for total proceeds of about $291 million.
The underwriter of the Offering will have a 30-day option to purchase up to 900,000 additional shares.
PBF Energy may use a portion of the proceeds for construction of a hydrogen plant facility at PBF Energy’s Delaware City refinery and to restart certain idle units at PBF Energy’s Chalmette refinery outside New Orleans. The Chalmette units may include a cracker unit were idled by the previous owner during the 2009 recession.
The hydrogen plant would remove sulfur from fuel and allow PBF to meet new standards for marine fuels.
In addition, net proceeds from this offering, or a portion thereof, may be used for general corporate purposes, including the repayment of debt and funding working capital requirements, a PBF release stated.
On August 2, PBF Energy announced a 30 cent per share dividend on outstanding Class A common stock, payable on August 30 to holders of record at the close of business on August 15.
Settlement of shares purchased in this offering will occur prior to the record date for this dividend and, as a result, purchasers in this offering who are holders of record at the close of business on August 15 will be entitled to receive the dividend and will be responsible for any related tax obligation.
PBF got its start during the past recession by purchasing the Delaware City Refinery with the help of a state financial package. The company went on to buy four other refineries. in New Jersey, Louisiana, Ohio and California.
