Holly Energy driving by with $400 million five-year unsecured notes; initial talk mid-6% area

By Paul A. Harris

Portland, Ore., April 6 – Holly Energy Partners, LP and Holly Energy Finance Corp. plan to price a $400 million offering of five-year senior notes (B1/BB+/BB+) in a Wednesday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the deal coming to yield in the mid-6% area.

Wells Fargo Securities LLC is the left bookrunner. MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc., TD Securities (USA) LLC and Truist Securities, Inc. are the joint bookrunners.

Barclays, BNP Paribas Securities Corp., Citizens Capital Markets Inc., Goldman Sachs & Co. LLC, PNC Capital Markets LLC and U.S. Bancorp Investments Inc. are the senior co-managers.

BofA Securities, Inc., CIT Capital, Citigroup Global Markets Inc., Comerica and Fifth Third Securities Inc. are the co-managers.

The Rule 144A and Regulation S for life notes become callable after two years at par plus 50% of the coupon.

The Dallas-based company plans to use the proceeds to pay down its revolver.

Holly Energy Partners operates a system of refined product pipelines and distribution terminals primarily in west Texas, New Mexico, Utah and Arizona.

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