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Delek Logistics Partners, LP (NYSE: DKL) has closed its public offering of 4,423,075 common units, including 576,922 units from the underwriters’ full exercise of their option. The units were priced at $39.00 each, generating gross proceeds of approximately $166 million. The company plans to use the funds to redeem outstanding convertible preferred units and repay borrowings under its revolving credit agreement.
Notably, Avigal Soreq, the company’s President, and other executives purchased 7,177 units at the public offering price. BofA Securities, Barclays, and RBC Capital Markets served as joint book-running managers for the offering, which was made under an effective shelf registration statement filed with the SEC.
Delek Logistics Partners, LP (NYSE: DKL) ha concluso la sua offerta pubblica di 4.423.075 unità comuni, comprese 576.922 unità derivanti dall’esercizio completo dell’opzione da parte dei sindacati. Le unità sono state prezzate a $39.00 ciascuna, generando proventi lordi di circa $166 milioni. L’azienda prevede di utilizzare i fondi per riscattare le unità preferenziali convertibili in circolazione e restituire i prestiti nell’ambito del suo accordo di credito revolving.
È importante notare che Avigal Soreq, il presidente dell’azienda, e altri dirigenti hanno acquistato 7.177 unità al prezzo dell’offerta pubblica. BofA Securities, Barclays e RBC Capital Markets hanno funto da gestori congiunti dell’offerta, che è stata effettuata sotto una dichiarazione di registrazione a scaffale efficace depositata presso la SEC.
Delek Logistics Partners, LP (NYSE: DKL) ha cerrado su oferta pública de 4,423,075 unidades comunes, incluyendo 576,922 unidades derivadas del ejercicio completo de su opción por parte de los suscriptores. Las unidades se fijaron en $39.00 cada una, generando ingresos brutos de aproximadamente $166 millones. La compañía planea utilizar los fondos para redimir unidades preferentes convertibles pendientes y pagar préstamos bajo su acuerdo de crédito revolving.
Notablemente, Avigal Soreq, el presidente de la compañía, y otros ejecutivos adquirieron 7,177 unidades al precio de la oferta pública. BofA Securities, Barclays y RBC Capital Markets actuaron como gerentes conjuntos de la oferta, que se realizó bajo una declaración de registro efectivo presentada ante la SEC.
Delek Logistics Partners, LP (NYSE: DKL)는 4,423,075개의 보통주 공모를 마감했습니다. 여기에는 인수단의 옵션 전액 행사에서 나온 576,922개의 단위가 포함됩니다. 이 단위는 $39.00에 가격이 책정되었으며, 약 $166 백만의 총 수익을 창출했습니다. 회사는 이 자금을 전환 가능한 우선 주식의 상환과 회전 신용 계약에 따른 차입금 상환에 사용할 계획입니다.
특히, 회사의 대통령인 Avigal Soreq와 다른 고위 경영진이 공모가로 7,177단위를 구매했습니다. BofA Securities, Barclays 및 RBC Capital Markets는 SEC에 제출된 유효한 선반 등록 진술서에 따라 공동 주관 관리자로서 이 공모에 참여했습니다.
Delek Logistics Partners, LP (NYSE: DKL) a clôturé son offre publique de 4 423 075 unités communes, incluant 576 922 unités provenant de l’exercice complet de l’option par les souscripteurs. Les unités étaient au prix de 39,00 $ chacune, générant des recettes brutes d’environ 166 millions $. La société prévoit d’utiliser les fonds pour racheter des unités privilégiées convertibles en circulation et rembourser des emprunts dans le cadre de son contrat de crédit revolving.
Notamment, Avigal Soreq, le président de la société, et d’autres dirigeants ont acheté 7 177 unités au prix de l’offre publique. BofA Securities, Barclays et RBC Capital Markets ont assuré le rôle de gestionnaires principaux pour cette offre, qui a été faite sous une déclaration d’enregistrement en cours de validité déposée auprès de la SEC.
Delek Logistics Partners, LP (NYSE: DKL) hat seine öffentliche Angebot von 4.423.075 Stammaktien abgeschlossen, einschließlich 576.922 Aktien aus der vollständigen Ausübung der Option durch die Underwriter. Die Aktien wurden zu einem Preis von $39,00 pro Stück angeboten, was brutto Einnahmen von etwa $166 Millionen generiert hat. Das Unternehmen plant, die Mittel zu verwenden, um ausstehende wandelbare Vorzugsaktien einzulösen und Forderungen aus einem revolvierenden Kreditvertrag zurückzuzahlen.
Insbesondere haben Avigal Soreq, der Präsident des Unternehmens, und andere Führungskräfte 7.177 Aktien zum öffentlichen Angebotspreis gekauft. BofA Securities, Barclays und RBC Capital Markets fungierten als gemeinsame Buchführer für das Angebot, das unter einer wirksamen Shelf-Registrierungsanmeldung, die bei der SEC eingereicht wurde, durchgeführt wurde.
Positive
- Successful closing of public offering with full exercise of underwriters’ option
- Gross proceeds of approximately $166 million raised
- Funds to be used for redeeming convertible preferred units and repaying credit agreement borrowings
- Company executives participated in the offering, demonstrating confidence
Negative
- Potential dilution of existing shareholders due to issuance of new common units
Insights
The closing of Delek Logistics Partners’ public offering of 4,423,075 common units at $39.00 per unit, including the full exercise of the underwriters’ option, is a significant capital raise event. The gross proceeds of approximately $166 million will be used strategically to redeem outstanding convertible preferred units and repay revolving credit borrowings, potentially improving the company’s capital structure and reducing interest expenses.
This move could enhance DKL’s financial flexibility and balance sheet strength. The participation of company executives in the offering, albeit small, signals confidence in the company’s prospects. However, investors should note that this equity issuance will dilute existing unitholders’ ownership. The impact on distributable cash flow per unit and the partnership’s ability to maintain or grow distributions will be important to monitor in upcoming quarters.
The successful completion of this offering, especially with full exercise of the underwriters’ option, suggests strong investor interest in DKL, which is positive for market sentiment. However, the use of proceeds for debt reduction rather than growth initiatives may indicate near-term expansion opportunities.
Delek Logistics Partners’ successful public offering demonstrates robust market demand for midstream energy assets in the current economic environment. The pricing at $39.00 per unit and full exercise of the underwriters’ option indicate strong investor confidence in DKL’s business model and future prospects.
The timing of this offering is noteworthy, as it comes amid volatile energy markets and increasing focus on clean energy transitions. DKL’s ability to raise significant capital suggests that investors still see value in traditional energy infrastructure assets, particularly those with stable cash flows.
The use of proceeds to redeem convertible preferred units and repay revolving credit borrowings is a prudent financial management move. This could potentially lower DKL’s cost of capital and improve its financial metrics, which may be viewed favorably by rating agencies and investors alike. However, it’s important to monitor how this capital restructuring affects DKL’s growth strategy and ability to compete in an evolving energy landscape.
BRENTWOOD, Tenn.–(BUSINESS WIRE)– Delek Logistics Partners, LP (NYSE: DKL) (“Delek Logistics”) announced today that it has closed its previously announced underwritten public offering of 4,423,075 common units representing limited partner interests in Delek Logistics, including 576,922 common units sold pursuant to the underwriters’ full exercise of their option to purchase additional common units, at a price of $39.00 per unit. Delek Logistics intends to use the gross proceeds of approximately $166 million, after underwriting fees and commissions and before other offering-related expenses, to redeem its outstanding convertible preferred units and to repay outstanding borrowings under its revolving credit agreement.
Avigal Soreq, our President, and certain other of our executives, purchased 7,177 of the common units offered in the offering at the price offered to the public.
The offering was made pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission (the “SEC”). A prospectus supplement relating to the offering has also been filed with the SEC.
BofA Securities, Barclays, and RBC Capital Markets acted as joint book-running managers for the offering. A copy of the prospectus supplement and accompanying base prospectus relating to the offering may be obtained from any of the underwriters, including BofA Securities, NC1-022-02-25 at 201 North Tryon Street, Charlotte, North Carolina 28255, Attention: Prospectus Department or by email at dg.prospectus_requests@bofa.com; Barclays Capital Inc. at c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at Barclaysprospectus@broadridge.com, or by telephone at (888)-603-5847; and RBC Capital Markets, LLC, attention: Equity Capital Markets, 200 Vesey Street, New York, NY 10281, or by telephone at (877)-822-4089 or by email at equityprospectus@rbcm.com. You may also obtain these documents for free when they are available by visiting the SEC’s website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering may be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”).
About Delek Logistics Partners, LP
Delek Logistics is a midstream energy master limited partnership headquartered in Brentwood, Tennessee. Through its owned assets and joint ventures located primarily in and around the Permian Basin, the Delaware Basin and other select areas in the Gulf Coast region, Delek Logistics provides gathering, pipeline, transportation, and other services for its customers in crude oil, intermediates, refined products, natural gas, storage, wholesale marketing, terminalling, water disposal and recycling.
Delek US Holdings, Inc. (NYSE: DK) owns the general partner interest as well as a majority limited partner interest in Delek Logistics and is also a significant customer.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including statements regarding the closing of the offering and the anticipated use of the net proceeds therefrom. These statements may contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “expect” or similar expressions, as well as statements in the future tense, are made as of the date they were first issued and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Delek Logistics’ control. Delek Logistics’ actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including, but not limited to, market risks and uncertainties, including those which might affect the offering, and the impact of any natural disasters or public health emergencies. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in Delek Logistics’ filings and reports with the SEC, including the Annual Report on Form 10-K for the year ended December 31, 2023 and other reports and filings with the SEC.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241010942278/en/
Investor Relations and Media/Public Affairs Contact:
investor.relations@delekus.com
Source: Delek Logistics Partners, LP
FAQ
How many common units did Delek Logistics Partners (DKL) offer in its public offering?
Delek Logistics Partners (DKL) offered 4,423,075 common units in its public offering, including 576,922 units from the underwriters’ full exercise of their option to purchase additional units.
What was the price per unit in Delek Logistics Partners’ (DKL) public offering?
The price per unit in Delek Logistics Partners’ (DKL) public offering was $39.00.
How much did Delek Logistics Partners (DKL) raise in gross proceeds from the offering?
Delek Logistics Partners (DKL) raised approximately $166 million in gross proceeds from the offering, after underwriting fees and commissions but before other offering-related expenses.
How does Delek Logistics Partners (DKL) plan to use the proceeds from the offering?
Delek Logistics Partners (DKL) plans to use the proceeds to redeem its outstanding convertible preferred units and to repay outstanding borrowings under its revolving credit agreement.
Who were the joint book-running managers for Delek Logistics Partners’ (DKL) public offering?
BofA Securities, Barclays, and RBC Capital Markets acted as joint book-running managers for Delek Logistics Partners’ (DKL) public offering.
