Delek Logistics Partners Announces Pricing of Public Offering

By Tamara Parker • Wednesday, October 09 15:20 • Permanent Link

Delek Logistics Partners, LP has announced the pricing of its public offering of 3,846,153 common units at $39.00 per unit. The offering is being made pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission. Additionally, the underwriters have been granted a 30-day option to purchase up to 576,922 additional common units.

The net proceeds from the offering, including any from the exercise of the underwriters' option, will be utilized to redeem Delek Logistics' outstanding convertible preferred units and to repay outstanding borrowings under its revolving credit agreement.

Following the offering, Delek Holdings' ownership of the outstanding Delek Logistics common units is expected to decline from 70.4% to approximately 65.2%. The offering is anticipated to settle and close on October 10, 2024, subject to customary closing conditions.

Delek Logistics, headquartered in Brentwood, Tennessee, is a midstream energy master limited partnership that provides various services for its customers in crude oil, intermediates, refined products, natural gas, storage, wholesale marketing, terminalling, water disposal, and recycling. Delek Holdings not only owns the general partner interest and a majority limited partner interest in Delek Logistics but is also a significant customer.

The joint book-running managers for the offering are BofA Securities, Barclays, and RBC Capital Markets. The preliminary prospectus supplement and accompanying base prospectus relating to this offering may be obtained from any of the underwriters.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Following these announcements, the company's shares moved -11.9%, and are now trading at a price of $39.36. Check out the company's full 8-K submission here.

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