Delek Logistics Partners, LP (NYSE: DKL) has announced the pricing of its underwritten public offering of 3,116,884 common units representing limited partner interests in Delek Logistics at $38.50 per unit. This offering is being made pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission (SEC).
The company intends to use the net proceeds from the offering to repay outstanding borrowings under its revolving credit agreement. As a result of this offering, Delek Holdings’ ownership of the outstanding Delek Logistics common units will decline from 78.7% prior to the offering to approximately 73.4% after the offering.
The offering is expected to settle and close on March 12, 2024, subject to the satisfaction of customary closing conditions. Truist Securities, BofA Securities, and Raymond James are acting as joint book-running managers for the offering.
Delek Logistics is a midstream energy master limited partnership headquartered in Brentwood, Tennessee. Through its owned assets and joint ventures, the company provides gathering, pipeline, transportation, and other services for its customers in crude oil, intermediates, refined products, natural gas, storage, wholesale marketing, terminalling water disposal, and recycling. Delek Holdings (NYSE: DK) owns the general partner interest as well as a majority limited partner interest in Delek Logistics and is also a significant customer.
Following these announcements, the company's shares moved -10.1%, and are now trading at a price of $40.05. For the full picture, make sure to review Delek Logistics's 8-K report.
