Delek Logistics Plans $200M Senior Notes Offering

By Bobby Samwell • Friday, April 12 10:20 • Permanent Link

Delek Logistics Partners, LP (NYSE: DKL) has announced its intention to offer $200 million in aggregate principal amount of additional 8.625% senior notes due 2029 in a private placement to eligible purchasers, subject to market conditions. This offering comes after the issuance of $650 million in aggregate principal amount of 8.625% senior notes due 2029 on March 13, 2024. The net proceeds from the offering are intended to be used to repay a portion of the outstanding borrowings under its revolving credit facility.

Delek Logistics, a midstream energy master limited partnership headquartered in Brentwood, Tennessee, 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. It operates primarily in and around the Permian Basin, the Delaware Basin, and other select areas in the Gulf Coast region.

Delek US Holdings, Inc. (NYSE: DK) owns the general partner interest as well as a majority limited partner interest in Delek Logistics and is also a significant customer.

The additional notes will be offered only to qualified institutional buyers in an offering exempt from registration in reliance on rule 144A under the Securities Act of 1933, as amended, and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act. It's important to note that the additional notes and related guarantees have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the securities act or any applicable state securities laws. This press release is being issued pursuant to rule 135c under the Securities Act.

The proposed offering reflects the company's strategic financing decisions and its efforts to optimize its capital structure to support its operations and growth initiatives. Today the company's shares have moved 0.2% to a price of $38.39. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.