By Devika Patel
Knoxville, Tenn., Nov. 17 – HollyFrontier Corp. offered further details about a $750 million add-on to its 5.875% senior notes (Baa3/BBB-) due April 1, 2026 in an FWP filed Thursday with the Securities and Exchange Commission. The notes priced on Wednesday in line with guidance at a spread of 362.5 basis points over Treasuries.
The notes feature a make-whole call at Treasuries plus 50 basis points until Jan. 1, 2026, then a par call.
Citigroup Global Markets Inc., BofA Merrill Lynch, Goldman Sachs & Co., MUFG and TD Securities (USA) LLC were the bookrunners.
HollyFrontier originally sold the notes on March 15, 2016 in a $250 million offering at Treasuries plus 400 bps. The total outstanding is now $1 billion.
The company will use the proceeds for general corporate purposes, which may include a portion of the $845 million purchase price for a planned acquisition of Suncor Energy’s Petro-Canada Lubricants business and capital expenditures, according to a 424B5 filed with the Securities and Exchange Commission.
HollyFrontier is a Dallas-based petroleum refiner.
| Issuer: | HollyFrontier Corp.
|
| Amount: | $750 million reopening
|
| Description: | Senior notes
|
| Maturity: | April 1, 2026
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| Bookrunners: | Citigroup Global Markets Inc., BofA Merrill Lynch, Goldman Sachs & Co., MUFG, TD Securities (USA) LLC
|
| Senior co-managers: | BNP Paribas Securities Corp., Citizens Capital Markets, Inc. and U.S. Bancorp Investments Inc.
|
| Co-managers: | Comerica Securities, Inc., Deutsche Bank Securities Inc. and Fifth Third Securities Inc.
|
| Coupon: | 5.875%
|
| Price: | 100.098
|
| Yield: | 5.86%
|
| Spread: | Treasuries plus 362.5 bps
|
| Call feature: | Make-whole call at Treasuries plus 50 bps until Jan. 1, 2026, then a par call
|
| Trade date: | Nov. 16
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| Settlement date: | Nov. 21
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 362.5 bps area
|
| Total outstanding: | $1 billion, including $250 million priced on March 15, 2016 at 400 bps over Treasuries
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