Published on 3/5/2010 in the Prospect News High Yield Daily.
New Issue: Holly Energy prices $150 million eight-year notes at par to yield 8¼%
By Paul A. Harris
St. Louis, March 5 - Holly Energy Partners, LP and Holly Energy Finance Corp. priced a $150 million offering of eight-year senior notes at par to yield 8¼% on Friday, according to an informed source.
The yield printed at the tight end of the 8¼% to 8½% price talk.
UBS Investment Bank was the left bookrunner. Bank of America Merrill Lynch and Goldman Sachs & Co. were joint bookrunners.
Co-managers were BBVA Securities Inc., Capital One Southcoast, Inc., Comerica Securities, Inc., Mitsubishi UFJ Securities (USA), Inc., PNC Capital Markets LLC and U.S. Bancorp Investments, Inc.
Proceeds will be used to refinance the company's outstanding senior secured revolving credit facility and to fund the acquisition of petroleum storage tanks.
Holly Energy is a Dallas-based provider of petroleum products and crude oil transportation, tankage and terminal services to the petroleum industry.
| Issuers: | Holly Energy Partners, LP and Holly Energy Finance Corp.
|
| Amount: | $150 million
|
| Maturity: | March 15, 2018
|
| Securities: | Senior unsecured notes
|
| Bookrunners: | UBS Investment Bank, Bank of America Merrill Lynch, Goldman Sachs & Co.
|
| Co-managers: | BBVA Securities Inc., Capital One Southcoast, Inc., Comerica Securities, Inc., Mitsubishi UFJ Securities (USA), Inc., PNC Capital Markets LLC, U.S. Bancorp Investments, Inc.
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 491 bps
|
| Call features: | Make-whole call at Treasuries plus 50 basis points until March 15, 2014, then callable at 104.125, 102.063, par on and after March 15, 2016
|
| Equity clawback: | 35% at 108.25% until to March 15, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | March 5
|
| Settlement date: | March 10
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 8¼% to 8½%
|
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