Published on 4/6/2022 in the Prospect News High Yield Daily.
New Issue: Holly Energy prices $400 million five-year notes at par to yield 6 3/8%
By Paul A. Harris
Portland, Ore., April 6 - Holly Energy Partners, LP and Holly Energy Finance Corp. priced a $400 million issue of five-year senior notes (Ba3/BB+/BB+) at par to yield 6 3/8% in a Wednesday drive-by, according to market sources.
The yield printed at the tight end of the 6 3/8% to 6½% yield talk, and tight to initial guidance in the mid-6% area.
Wells Fargo Securities LLC was the left bookrunner. MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc., TD Securities (USA) LLC and Truist Securities, Inc. are joint bookrunners.
The Dallas-based company plans to use the proceeds to pay down its revolver.
Holly Energy Partners operates a system of refined product pipelines and distribution terminals primarily in west Texas, New Mexico, Utah and Arizona.
| Issuers: | Holly Energy Partners, LP and Holly Energy Finance Corp.
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| Amount: | $400 million
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| Maturity: | April 15, 2027
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| Securities: | Senior notes
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| Joint bookrunners: | Wells Fargo Securities LLC (left), MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc., TD Securities (USA) LLC, Truist Securities, Inc.
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| Senior co-managers: | Barclays, BNP Paribas Securities Corp., Citizens Capital Markets Inc., Goldman Sachs & Co. LLC, PNC Capital Markets LLC and U.S. Bancorp Investments Inc.
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| Co-managers: | BofA Securities, Inc., CIT Capital, Citigroup Global Markets Inc., Comerica, Fifth Third Securities Inc.
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| Coupon: | 6 3/8%
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| Price: | Par
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| Yield: | 6 3/8%
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| Spread: | Treasuries plus 366 bps
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| First call: | April 15, 2024 at 103.186
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| Trade date: | April 6
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| Settlement date: | April 8
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| Ratings: | Moody's: Ba3
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| S&P: BB+
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| Fitch: BB+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 6 3/8% to 6½%
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| Marketing: | Drive-by
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