BRENTWOOD, Tenn. - Delek Logistics Partners, LP (NYSE: NYSE:DKL), a midstream energy partnership, has launched a public offering of $120 million of its common units, as per the company's announcement today. The offering includes an option for underwriters to purchase an additional $13.5 million of units, subject to market conditions, with no guarantees on the completion or terms of the offering.
The proceeds from the sale are intended to repay outstanding borrowings under Delek Logistics' revolving credit agreement. Delek US Holdings, Inc. (NYSE: NYSE:DK), which owns the general partner interest in Delek Logistics, has expressed non-binding interest in buying up to $30 million of the common units at the public offering price.
Joint book-running managers for the offering include Truist Securities, BofA Securities, and Raymond James. The offering is made through a prospectus and related prospectus supplement as required by the Securities Act.
Delek Logistics, based in Brentwood, Tennessee, operates in the Permian and Delaware Basins, as well as the Gulf Coast region, providing a variety of services in the energy sector. Delek Holdings, in addition to owning the general partner interest, is a significant customer of Delek Logistics.
The press release also includes forward-looking statements regarding the offering and its expected use of proceeds, which are subject to market risks and other uncertainties.
This news report is based on a press release statement from Delek Logistics Partners, LP.
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