Holly Energy starts roadshow for $300 million eight-year notes; proceeds to repay bank debt

By Paul A. Harris

Portland, Ore., July 12 – Holly Energy Partners, LP, along with co-issuer Holly Energy Finance Corp., began a roadshow on Tuesday in New York for a $300 million offering of eight-year senior notes (expected ratings B1/BB), according to a syndicate source.

The roadshow moves to Boston on Wednesday, and the Rule 144A and Regulation S for life offering is expected to price on Thursday.

Citigroup Global Markets Inc. is the left bookrunner. BofA Merrill Lynch, BBVA, MUFG, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the joint bookrunners.

Goldman Sachs & Co., PNC Capital Markets, Scotia Capital, SunTrust Robinson Humphrey Inc. and TD Securities are the senior co-managers. BNP Paribas Securities Corp., Capital One, Citizens, Comerica, Fifth Third Securities and SMBC Nikko are the co-managers.

The notes feature a make-whole call for the first three years, after which they become callable at par plus 75% of the coupon. They also feature a three-year 35% equity clawback and a 101% poison put.

The Dallas-based petroleum pipeline operator plans to use the proceeds to repay debt under its revolver.

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