Delek Logistics talks $400 million seven-year notes to yield 7¼%-7½%; pricing Thursday

By Paul A. Harris

Portland, Ore., May 20 – Delek Logistics Partners, LP and Delek Logistics Finance Corp. talked their $400 million offering of seven-year senior notes (B3/BB-/BB-) to yield 7¼% to 7½%, according to syndicate sources.

Official talk comes in line with initial guidance in the low-to-mid 7% area.

Books close at 1 p.m. ET on Thursday, and the deal is set to price thereafter.

Wells Fargo Securities LLC is the left bookrunner. RBC Capital Markets LLC, PNC Capital Markets LLC and Barclays are the joint bookrunners.

Citizens Capital Markets Inc., Truist Securities Inc., MUFG and Fifth Third Securities Inc. are the senior co-managers. Regions Securities LLC, U.S. Bancorp Investments Inc. and Evercore are the co-managers.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon.

The Brentwood, Tenn.-based energy master limited partnership plans to use the proceeds to repay its revolver and for general corporate purposes.

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