Delek Logistics Partners, LP has announced the pricing of an upsized offering of $700 million in aggregate principal amount of 7.375% senior notes due 2033 at par. The offering is expected to close on June 30, 2025, subject to satisfaction of customary closing conditions. The net proceeds from the offering will be used to repay a portion of the outstanding borrowings under its revolving credit facility.
Delek Logistics Partners, LP's 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 provide gathering, pipeline, and other transportation services primarily for crude oil and natural gas customers, storage, wholesale marketing, and terminalling services primarily for intermediate and refined product customers, as well as water disposal and recycling services.
In comparison to the previous period, the offering has been upsized to $700 million from the previous amount. The senior notes are priced at 7.375% and are due in 2033. The intended use of the net proceeds is to repay a portion of the outstanding borrowings under the revolving credit facility.
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 market has reacted to these announcements by moving the company's shares -1.24% to a price of $42.36. For more information, read the company's full 8-K submission here.
