CVR Energy's CVR Partners cancels planned IPO

CVR Partners LP, which was formed by CVR Energy Inc. to operate a fertilizer facility, has canceled its planned initial public offering, according to a filing with the Securities and Exchange Commission on Thursday.

CVR Partners registered for an IPO in February. The Sugar Land, Texas-based company planned to offer 5.25 million common units representing limited partner interests.

In the SEC filing, CVR Partners said was withdrawing its registration statement "due to current market conditions for initial public offerings by master limited partnerships."

The IPO market has tightened in 2008 due to the squeezed credit markets and worries about a potential U.S. recession.

CVR expected to raise about $93.4 million from the offering, assuming an IPO price of $20 per unit and after deducting underwriting discounts and other expenses.

The company planned to use the proceeds to reimburse certain capital expenditures, to pay fees associated with a new credit facility and for working capital and the ongoing expansion of its fertilizer plant.

The company had not disclosed which firms planned to underwrite the offering.