BRENTWOOD, Tenn., Feb. 28,
2024 /PRNewswire/ -- Delek Logistics Partners, LP
(NYSE: DKL) ("Delek Logistics") announced today that it, along with
Delek Logistics Finance Corp., a subsidiary of Delek Logistics,
priced an upsized offering of $650
million in aggregate principal amount of 8.625% senior notes
due 2029 (the "Notes") at par. The aggregate principal amount of
the offering was increased from the previously announced offering
size of $550 million.
The offering is expected to close March
13, 2024, subject to satisfaction of customary closing
conditions. Delek Logistics intends to use the net proceeds from
the offering to (i) repurchase or redeem all of the outstanding
6.75% Senior Notes due 2025 (the "2025 Notes"), (ii) repay in full
the outstanding borrowings under Delek Logistics' term loan
facility and (iii) pay accrued and unpaid interest, premiums, fees
and expenses related to such repurchases, repayments and
redemptions. Delek Logistics intends to use any remaining net
proceeds for general corporate purposes, which may include the
repayment of a portion of the outstanding borrowings under its
revolving credit facility.
The Notes are being offered only to persons reasonably believed
to be qualified institutional buyers in an offering exempt from
registration in reliance on Rule 144A under the Securities Act of
1933, as amended (the "Securities Act"), and to non-U.S. persons
outside the United States in
reliance on Regulation S under the Securities Act. The Notes and
related guarantees have not been registered under the Securities
Act or any state securities laws and may not be offered or sold in
the United States without
registration or an applicable exemption from the registration
requirements of the Securities Act or any applicable state
securities laws.
This press release is being issued pursuant to Rule 135c under
the Securities Act, and is neither an offer to sell nor a
solicitation of an offer to buy the Notes or any other securities
and shall not constitute an offer to sell or a solicitation of an
offer to buy, or a sale of, the Notes or any other securities in
any jurisdiction in which such offer, solicitation or sale is
unlawful. This press release does not constitute a notice of
redemption under the optional redemption provisions of the
indenture governing the 2025 Notes.
About Delek Logistics Partners, LP
Delek Logistics is a midstream energy master limited partnership
headquartered in Brentwood,
Tennessee. Through its owned assets and joint ventures
located primarily in and around the Permian Basin, the Delaware Basin and other select areas in the
Gulf Coast region, Delek Logistics provides gathering, pipeline,
transportation, and other services for its customers in crude oil,
intermediates, refined products, natural gas, storage, wholesale
marketing, terminalling water disposal and recycling.
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.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act and Section 21E of
the Securities Exchange Act of 1934, as amended, including
statements regarding the closing of the offering and the
anticipated use of the net proceeds therefrom. These statements may
contain words such as "possible," "believe," "should," "could,"
"would," "predict," "plan," "estimate," "intend," "may,"
"anticipate," "will," "if," "expect" or similar expressions, as
well as statements in the future tense, are made as of the date
they were first issued and are based on current expectations,
estimates, forecasts and projections as well as the beliefs and
assumptions of management. Forward-looking statements are subject
to a number of risks and uncertainties, many of which involve
factors or circumstances that are beyond Delek Logistics'
control. Delek Logistics' actual results could differ materially
from those stated or implied in forward-looking statements due to a
number of factors, including, but not limited to, market risks and
uncertainties, including those which might affect the offering, and
the impact of any natural disasters or public health emergencies.
These and other potential risks and uncertainties that could cause
actual results to differ from the results predicted are more fully
detailed in Delek Logistics' filings and reports with the
Securities and Exchange Commission ("SEC"), including the Annual
Report on Form 10-K for the year ended December 31, 2023 and other reports and filings
with the SEC.
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SOURCE Delek Logistics Partners, LP