Valero Energy Partners LP, a limited partnership formed by Valero Energy Corp. (NYSE: VLO) has commenced an initial public offering of 15 million common units, the company announcd Dec. 2.

The underwriters of the offering are expected to be granted a 30-day option to purchase up to some 2.3 million additional units from Valero Energy Partners. The common units are expected to trade on the New York Stock Exchange under the ticker symbol "VLP."

The common units being offered represent a 25.5% limited partner interest in Valero Energy Partners, or a 29.4% limited partner interest if the underwriters exercise in full their option to purchase additional common units. Valero, through certain of its subsidiaries, will own the remaining limited partner interests in Valero Energy Partners, as well as the 2% general partner interest.

J.P. Morgan, Barclays, Citigroup, RBC Capital Markets, and Wells Fargo Securities are joint book-running managers. Mitsubishi UFJ Securities, SunTrust Robinson Humphrey, Credit Agricole CIB, Credit Suisse, Jefferies, Mizuho Securities, RBS, and Scotiabank/Howard Weil are co-managers.

The offering is being made only by means of a prospectus.

Valero Energy Partners LP is a fee-based, growth-oriented, traditional master limited partnership formed by Valero Energy Corp. to own, operate, develop and acquire crude oil and refined petroleum products pipelines, terminals and other transportation and logistics assets. The company is headquartered in San Antonio.