Delek Logistics Partners offers $550 million five-year senior notes; initial talk 8¾%-9%

By Paul A. Harris

Portland, Ore., Feb. 28 – Delek Logistics Partners, LP and Delek Logistics Finance Corp. announced plans to price a $550 million offering of senior notes due 2029 (B3/BB-/BB-) on Thursday, according to market sources.

The deal is in the market with initial guidance of 8¾% to 9%, according to a trader, who expects the announced timing to be accelerated to Wednesday business.

The Rule 144A and Regulation S for life five-year notes become subject to an initial call after two years at par plus 50% of the coupon.

Wells Fargo Securities LLC is the left bookrunner. BofA Securities Inc., MUFG Securities Americas Inc. and Fifth Third Securities Inc. are the joint bookrunners.

Citizens JMP Securities LLC and PNC Capital Markets LLC are the senior co-managers.

RBC Capital Markets LLC, Regions Securities LLC, U.S. Bancorp Investments Inc., Barclays and Truist Securities Inc. are the co-managers.

Proceeds plus a draw on the company’s revolver will be used to refinance the company’s 6¾% senior notes due 2025 and to repay its term loan A due 2025.

Delek Logistics is a Brentwood, Tenn.-based midstream company that owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets.

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