BRENTWOOD, Tenn. - Delek Logistics Partners, LP (NYSE: NYSE:DKL), along with its subsidiary Delek Logistics Finance Corp., announced their intention to offer $550 million in senior notes due 2029 in a private placement to qualified institutional buyers. The move, subject to market conditions, aims to address various financial obligations and support the company's general corporate activities.
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 due 2025.
Moreover, Delek Logistics plans to repay the outstanding borrowings under its term loan facility and cover related accrued interest, premiums, fees, and expenses. Any remaining funds will be allocated for general corporate purposes, potentially including the repayment of a portion of the outstanding borrowings under its revolving credit facility.
This offering will be available exclusively to qualified institutional buyers according to Rule 144A under the Securities Act and to non-U.S. persons outside the United States in compliance with Regulation S under the same act.
The notes and their guarantees will not be registered under the Securities Act or state securities laws, and as such, may not be offered or sold in the U.S. without registration or an exemption from these requirements.
The press release, issued under Rule 135c of the Securities Act, clarifies that it is neither an offer to sell nor a solicitation of an offer to buy the notes or any other securities and that it should not be considered a sale in jurisdictions where such actions would be unlawful. It also does not constitute a notice of redemption under the indenture governing the 2025 Notes.
Delek Logistics, a master limited partnership based in Brentwood, Tennessee, operates in the midstream energy sector. Its assets and joint ventures, primarily situated in the Permian and Delaware Basins and other Gulf Coast regions, provide a range of services including gathering, pipeline, transportation, and storage for crude oil, intermediates, refined products, and natural gas.
Delek US Holdings, Inc. (NYSE: NYSE:DK) holds the general partner interest and a majority of the limited partner interest in Delek Logistics and is also a significant customer. The company's forward-looking statements regarding the offering and the use of net proceeds are based on current expectations and are subject to market risks and other factors that could affect the actual results.
This article is based on a press release statement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.