BRENTWOOD, Tennessee – Delek Logistics Partners, LP (NYSE: NYSE:), together with its subsidiary Delek Logistics Finance Corp. announced its intention to offer $550 million of senior notes due 2029 in a private placement to qualified institutional buyers. This step, depending on market conditions, is aimed at addressing various financial obligations and supporting the overall corporate activities of the company.
The proceeds from the sale of these senior notes, which are not registered under the Securities Act of 1933 or any state securities laws, will be used primarily to repurchase or redeem all outstanding 6.75 senior notes. % with maturity in 2025.
In addition, Delek Logistics plans to repay outstanding borrowings under the term loan and cover related accrued interest, premiums, fees and expenses. Any remaining funds will be used for general corporate purposes, possibly including the repayment of a portion of the outstanding borrowings under the revolving credit facility.
This offering will be available exclusively to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside the United States in accordance with Regulation S under the same law.
The Notes and the guarantees thereof will not be registered under the Securities Act or any state securities laws and, as such, may not be offered or sold in the United States absent registration or an exemption from such requirements.
The press release issued pursuant to Rule 135c under the Securities Act clarifies that this is neither an offer to sell nor a solicitation of an offer to buy notes or any other securities and that this should not be construed as a sale in jurisdictions where such actions would be illegal. It also does not constitute notice of redemption under the indenture governing the 2025 Notes.
Delek Logistics, a master limited partnership based in Brentwood, Tennessee, operates in the energy sector. Its assets and joint ventures, primarily located in the Permian and Delaware Basins and other Gulf Coast regions, provide a range of services including gathering, pipeline, transportation and storage of crude oil, intermediates, refined products and crude oil.
Delek US Holdings, Inc. (NYSE: NYSE:) owns a general partner interest and a majority of a limited partner interest in Delek Logistics and is also a major customer. The Company’s forward-looking statements regarding the placement and use of net proceeds are based on current expectations and are subject to market risks and other factors that could affect actual results.
This article is based on a press statement.
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