Holly Energy Partners and Holly Corporation Close Previously Announced Pipelines Transaction; Holly Energy Privately Sells 1.1 M
11 Juillet 2005 - 7:20PM
PR Newswire (US)
Holly Energy Partners and Holly Corporation Close Previously
Announced Pipelines Transaction; Holly Energy Privately Sells 1.1
Million Common Units as Part of Financing for Pipelines Transaction
DALLAS, July 11 /PRNewswire-FirstCall/ -- Holly Energy Partners,
L.P. (NYSE:HEP) ("Holly Energy" or the "Partnership") and Holly
Corporation (NYSE:HOC) ("Holly") today announced that Holly Energy
has acquired Holly's intermediate feedstock pipelines connecting
its Lovington, NM and Artesia, NM refining facilities in a
transaction valued at $81.5 million, which consisted of
approximately $77.7 million in cash, 70,000 in common units of
Holly Energy and a capital account credit to maintain Holly's
current general partner interest in Holly Energy. As previously
announced on June 10, 2005, the Boards of Directors of Holly Energy
and Holly, and the Conflicts Committee of the Board of Directors of
Holly Energy, approved the acquisition, which was made pursuant to
an option to purchase these pipelines granted by Holly to Holly
Energy at the time of Holly Energy's initial public offering in
July 2004. Concurrently with the closing of the purchase agreement
with Holly, Holly Energy has also privately sold 1.1 million common
units for $45.1 million to a limited number of institutional
investors. Holly Energy utilized the proceeds raised in this
private placement and Holly Energy's recently completed offering of
an additional $35.0 million in principal amount of its 6.25% senior
notes due 2015 to finance the cash portion of the pipelines
transaction described above. This release shall not constitute an
offer to sell or the solicitation of an offer to buy the securities
described herein. The securities to be offered have not been
registered under the Securities Act of 1933 or any state securities
laws and may not be offered or sold in the United States absent
registration or an applicable exemption from registration
requirements. Holly Energy Partners, L.P., headquartered in Dallas,
Texas, provides refined petroleum product transportation and
terminal services to the petroleum industry, including Holly
Corporation, which, after giving effect to the transactions
described herein, owns a 45% interest in the Partnership. The
Partnership owns and operates refined product pipelines and
terminals primarily in West Texas, New Mexico, Arizona, Washington,
Colorado and Utah. In addition, the Partnership owns a 70% interest
in Rio Grande Pipeline Company, a transporter of LPGs from West
Texas to Northern Mexico. Holly Corporation, headquartered in
Dallas, Texas, is an independent petroleum refiner and marketer
that produces high value light products such as gasoline, diesel
fuel and jet fuel. Holly operates through its subsidiaries a 75,000
bpd refinery located in Artesia, New Mexico, a 26,000 bpd refinery
in Woods Cross, Utah, and an 8,000 bpd refinery in Great Falls,
Montana. The following is a 'safe harbor' statement under the
Private Securities Litigation Reform Act of 1995: The statements in
this press release relating to matters that are not historical
facts are "forward-looking statements" within the meaning of the
federal securities laws. These statements are based on our beliefs
and assumptions using currently available information and
expectations as of the date hereof, are not guarantees of future
performance and involve certain risks and uncertainties, including
those contained in our filings with the Securities and Exchange
Commission and those relating to the acquisition of the
intermediate pipelines from Holly and the future performance of
these assets. Although we believe that the expectations reflected
in these forward-looking statements are reasonable, we cannot
assure you that our expectations will prove correct. Therefore,
actual outcomes and results could materially differ from what is
expressed, implied or forecast in these statements. The
forward-looking statements speak only as of the date made, other
than as required by law, and we undertake no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. DATASOURCE:
Holly Energy Partners, L.P.; Holly Corporation CONTACT: Stephen J.
McDonnell, Vice President and Chief Financial Officer, or M. Neale
Hickerson, Vice President, Treasury and Investor Relations, both of
Holly Energy Partners, L.P., +1-214-871-3555 Web site:
http://www.hollycorp.com/
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