Delek Logistics Partners, LP (NYSE: DKL) has announced its intention to offer $100 million in aggregate principal amount of additional 8.625% senior notes due 2029. This offering will be issued under the same indenture as the $650 million in aggregate principal amount of 8.625% senior notes due 2029 issued in March 2024 and the $200 million in aggregate principal amount of 8.625% senior notes due 2029 issued in April 2024.
The net proceeds from the offering will be used to repay a portion of the outstanding borrowings under Delek Logistics' revolving credit facility. The offering is made to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933 and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act.
Delek Logistics is a midstream energy master limited partnership headquartered in Brentwood, Tennessee. 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 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.
This press release is being issued pursuant to Rule 135c under the Securities Act and does not constitute an offer to sell or a solicitation of an offer to buy the additional notes or any other securities.
As of the latest financial reporting period, Delek Logistics had $850 million in aggregate principal amount of 8.625% senior notes due 2029 issued under the same indenture, and the company aims to add $100 million to this existing debt through the proposed offering. Following these announcements, the company's shares moved -0.1%, and are now trading at a price of $38.2. For more information, read the company's full 8-K submission here.
