Holly Energy to get $100 million credit facility in conjunction with IPO

By Sara Rosenberg

New York, March 15 - Holly Energy Partners LP plans to get a new $100 million unsecured credit facility in connection with its initial public offering of common units, according to an S-1 filed with the Securities and Exchange Commission on Monday.

Financial covenants anticipated under the credit agreement include a total-debt-to-EBITDA ratio and an EBITDA-to-interest-expense ratio.

The facility will be available for general partnership purposes, including capital expenditures and acquisitions.

Upon closing on the facility, the company expects to draw $25 million to fund a cash distribution to Holly Corp.

Goldman Sachs & Co., Lehman Brothers, UBS Investment Bank and A.G. Edwards & Sons Inc. are leading the IPO.

Holly Energy is a Dallas operator of refined product pipelines and distribution terminals.

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