Time: 2024-08-14
Delek Logistics Partners , LP recently announced that it plans to offer 00 million of additional 8.625 % senior notes due 2029 . This offering is an extension of the 50 million and 00 million senior notes issued earlier this year . The net proceeds from this offering will be used to repay outstanding borrowings under its revolving credit facility . The Additional Notes will be offered to qualified institutional buyers in a private placement exempt from registration.
In a subsequent announcement , Delek Logistics Partners , LP revealed that it had priced an upsized offering of 00 million of additional 8.625 % senior notes due 2029 . The offering price was set at 103.250 % of the face value of the notes . This increase in the offering size from the initial 00 million further demonstrates investor confidence in Delek Logistics . The net proceeds from this offering will also be used to repay borrowings under the revolving credit facility.
The offering is expected to close on August 16 , 2024 , pending the satisfaction of customary closing conditions . The Additional Notes will be issued under the same indenture as the previously issued senior notes and will form part of the same series . These notes will also be offered to qualified institutional buyers in a private placement exempt from registration requirements.
Both offerings are part of Delek Logistics ' strategy to strengthen its financial position and manage its debt obligations effectively . By utilizing the proceeds to repay existing borrowings , the company aims to reduce its interest expenses and improve its liquidity position . These moves are in line with the company 's long - term growth and financial stability goals.
Delek Logistics Partners , LP also highlighted in its announcements that certain statements made are forward - looking and subject to risks and uncertainties . Factors such as market conditions and natural disasters could impact the offering and the company 's financial performance . Investors are advised to review the company 's filings with the Securities and Exchange Commission for a comprehensive understanding of the risks involved.
In conclusion , Delek Logistics ' decision to offer additional senior notes and the successful pricing of an upsized offering reflect the company 's proactive approach to managing its debt and capital structure . The utilization of the proceeds to repay borrowings will further enhance the company 's financial flexibility and resilience in the dynamic energy market landscape.
Business
