Butler Hall Capital Issues Letter to Board of Directors of CVRR

LOS ANGELES--()--Butler Hall Capital LLC (“Butler Hall”), on behalf of its managed fund, sent the following letter to the Board of Directors of CVR Refining LP (“CVRR”) regarding the recently announced tender proposal from CVR Energy Inc. (“CVI”). As discussed in more detail in the letter, Butler Hall believes that CVI’s proposal grossly undervalues CVRR on both an absolute and relative basis.

“effectively surrender a gallon for 2/3rds of a gallon.”

Butler Hall highlights its concerns that CVI’s financial incentive for this tender directly conflicts with minority unitholders and argues that CVI is asking CVRR unitholders to “effectively surrender a gallon for 2/3rds of a gallon.” Butler Hall believes that the proposed exchange ratio of .6335 leads to a ~37% immediate loss in intrinsic value and sets forth the case for why a more equitable exchange ratio should be 1.00 to account for the comparable earnings power.

Butler Hall recommends that the Board address this conflict of interest by forming an independent conflicts committee to evaluate the current offer and provide a recommendation to unitholders.


Butler Hall Capital LLC
Brad Lundy, 424-644-6009
Managing Member