© Reuters.
BRENTWOOD, Tenn. – Delek Logistics Companions, LP (NYSE:), together with its subsidiary Delek Logistics Finance Corp., has upsized its senior notes providing to $650 million, an increase from the preliminary $550 million proposed. The 8.625% senior notes, due in 2029, have been priced at par and are slated to shut on March 13, 2024, contingent on customary closing circumstances.
The corporate plans to allocate the online proceeds from this providing to repurchase or redeem all excellent 6.75% Senior Notes due in 2025. Moreover, Delek Logistics goals to repay the remaining stability on its time period mortgage facility and canopy related accrued curiosity, premiums, charges, and bills. Ought to any funds stay submit these transactions, they are going to be used for common company functions, which can embrace decreasing the debt from its revolving credit score facility.
The notes are focused at certified institutional consumers in a personal providing exempt from registration, leaning on Rule 144A underneath the Securities Act of 1933, in addition to to sure non-U.S. individuals in offshore transactions underneath Regulation S of the identical act. These notes and the associated ensures haven’t been registered underneath the Securities Act or any state securities legal guidelines and are to not be provided or offered inside the US absent registration or an exemption from these necessities.
This monetary maneuver is a part of a strategic transfer by Delek Logistics, a midstream vitality partnership that operates primarily within the Permian and Delaware Basins, in addition to the Gulf Coast area. The partnership makes a speciality of companies for , intermediates, refined merchandise, , and different associated sectors.
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