UPDATE 1- CVR Partners files for $200 mln IPO

* Says has pet coke supply agreement with CVR Energy

* To make special distribution to Coffeyville

Dec 20 (BestGrowthStock) – CVR Partners LP, formed by CVR Energy
Incorporated (CVI.N: ), filed with U.S. securities regulators to
raise up to $200 million in an initial public offering.

The Delaware-based nitrogen fertilizer producer said it has
a 1,225 ton-per-day ammonia unit, a 2,025 ton-per-day urea
ammonium nitrate (UAN) unit and a gasifier complex.

CVR Partners said it upgrades most of the ammonia it
produces to higher margin UAN fertilizer, an aqueous solution
of urea and ammonium nitrate, to command a premium price over
ammonia.

Proceeds from the offering will be used to make a special
distribution to Coffeyville Resources, a unit of CVR Energy,
and buy incentive distribution rights from its general partner
for $26 million, CVR Partners said in a regulatory filing.

The company said it will also expand production of UAN and
buy additional infrastructure and production assets.

For the nine months ended Sept. 30, CVR Partners posted net
income of $39.5 million, compared with $48.1 million, a year
ago, hurt by lower prices and sales volume.

The company said it has an agreement with CVR Energy from
October 2007 to buy pet coke for its fertilizer plant.

In the last three decades, global fertilizer demand has
grown 2.1 percent annually, according to the International
Fertilizer Industry Association. It is projected to rise 17
percent to meet global food demand over the next 20 years.

CVR Partners said it will apply for a listing on the NYSE
under the symbol UAN.
Morgan Stanley and Barclays Capital manage the issue.
(Reporting by Archana Shankar in Bangalore; Editing by Don
Sebastian)

UPDATE 1- CVR Partners files for $200 mln IPO