Delek Logistics Partners, LP (NYSE: DKL) has announced the pricing of an offering of $200 million in aggregate principal amount of additional 8.625% senior notes due 2029. The offering price is equal to 101.250% of their face value, plus accrued interest from March 13, 2024. This offering is in addition to the $650 million in aggregate principal amount of 8.625% senior notes due 2029 issued by the issuers on March 13, 2024.
The offering is expected to close on April 17, 2024, and the net proceeds from the offering will be used to repay a portion of the outstanding borrowings under Delek Logistics' revolving credit facility.
The additional notes are being offered only to qualified institutional buyers and non-U.S. persons outside the United States. 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.
Delek Logistics Partners, LP is a midstream energy master limited partnership headquartered in Brentwood, Tennessee. Through its owned assets and joint ventures primarily located in and around the Permian Basin, the Delaware Basin, and other select areas in the Gulf Coast region, Delek Logistics 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 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. Following these announcements, the company's shares moved -0.4%, and are now trading at a price of $37.86. For more information, read the company's full 8-K submission here.
