BRENTWOOD, Tenn. - Delek Logistics Partners, LP (NYSE:DKL), in conjunction with its subsidiary Delek Logistics Finance Corp., has upsized its senior notes offering to $650 million, a rise from the initial $550 million proposed. The 8.625% senior notes, due in 2029, were priced at par and are slated to close on March 13, 2024, contingent on customary closing conditions.
The company plans to allocate the net proceeds from this offering to repurchase or redeem all outstanding 6.75% Senior Notes due in 2025. Additionally, Delek Logistics aims to pay off the remaining balance on its term loan facility and cover associated accrued interest, premiums, fees, and expenses. Should any funds remain post these transactions, they will be used for general corporate purposes, which may include reducing the debt from its revolving credit facility.
The notes are targeted at qualified institutional buyers in a private offering exempt from registration, leaning on Rule 144A under the Securities Act of 1933, as well as to certain non-U.S. persons in offshore transactions under Regulation S of the same act. These notes and the related guarantees have not been registered under the Securities Act or any state securities laws and are not to be offered or sold within the United States absent registration or an exemption from these requirements.
This financial maneuver is part of a strategic move by Delek Logistics, a midstream energy partnership that operates primarily in the Permian and Delaware Basins, as well as the Gulf Coast region. The partnership specializes in services for crude oil, intermediates, refined products, natural gas, and other related sectors.
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