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, intends to offer $550
million in aggregate principal amount of senior notes due
2029 (the "Notes") in a private placement to eligible purchasers,
subject to market 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 will be 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 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