Delek launches $250 million add-on term loan B at 99-99.5 OID

By Sara Rosenberg

New York, May 7 – Delek US Holdings Inc. launched on Tuesday its fungible $250 million add-on covenant-lite term loan B due March 30, 2025 with original issue discount talk of 99 to 99.5, according to a market source.

Pricing on the add-on term loan is Libor plus 225 basis points with a 0% Libor floor, the source said.

The add-on term loan includes 101 soft call protection for six months and amortization of 1% per annum.

Wells Fargo Securities LLC is the lead arranger on the deal.

Commitments are due at noon ET on May 15.

Proceeds will be used to repay borrowings under the company’s ABL facility and pay transaction-related fees and expenses.

Expected term loan ratings are B1/BBB-.

The company’s existing term loan B is sized at $693 million.

Delek is a Brentwood, Tenn.-based Permian-based integrated downstream energy company.

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