Holly Energy talks upsized $350 million eight-year senior notes to yield 6%-6¼%

By Paul A. Harris

Portland, Ore., July 13 – Holly Energy Partners, LP, along with co-issuer Holly Energy Finance Corp., upsized their offering of eight-year senior notes (B1/BB) to $350 million from $300 million and talked the notes to yield 6% to 6¼%, according to a syndicate source.

Along with the upsizing, timing was moved ahead.

Books close at 2 p.m. ET on Wednesday, and the Rule 144A and Regulation S for life offering is expected to price thereafter.

A previously announced timeline had the deal in the market until 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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