By Paul A. Harris
St. Louis, Feb. 11 - Holly Energy Partners LP priced a $150 million issue of nine-year senior notes (Ba3/B+) at par to yield 6¼%, according to syndicate sources.
Price talk was in the 6¼% area.
UBS Investment Bank ran the books for the Rule 144A with registration rights offering. Banc of America Securities LLC and Goldman Sachs & Co. were the joint bookrunners.
Proceeds will be used to help fund the acquisition of pipeline and terminal assets of Alon USA for $120 million in cash and 937,500 Holly Energy Partners class B subordinated units and to repay debt.
Holly Energy is a Dallas-based provider of refined petroleum product transportation and terminal services to the petroleum industry.
| Issuer: | Holly Energy Partners LP
|
| Amount: | $150 million
|
| Maturity: | March 1, 2014
|
| Security description: | Senior notes
|
| Bookrunners: | UBS Investment Bank (books), Banc of America Securities, Goldman Sachs & Co. (joint books)
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Spread: | 215 basis points
|
| Call features: | Callable after March 1, 2010 at 103.125, 102.083, 101.042 and par on and after March 1, 2013
|
| Equity clawback: | Until March 1, 2008 for 35% at 106.25
|
| Trade date: | Feb. 11
|
| Settlement date: | Feb. 28
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
| Price talk: | 6¼% area
|
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