Reported Earlier, Delek Logistics Partners Prices Upsized Offering Of $650M 8.625% Senior Notes Due 2029
Portfolio Pulse from Benzinga Newsdesk
Delek Logistics Partners has upsized its offering of senior notes to $650M at 8.625% due in 2029, from the initially announced $550M. The offering, closing on March 13, 2024, aims to fund the repurchase of 6.75% Senior Notes due 2025, repay term loan facility borrowings, and cover related expenses. Remaining proceeds will support general corporate purposes.
February 29, 2024 | 8:54 am
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Delek Logistics Partners increases its senior notes offering to $650M to refinance existing debt and for general corporate purposes.
The upsizing of the offering indicates a strong demand for Delek Logistics' debt instruments, potentially reflecting investor confidence in the company's financial health and future prospects. The use of proceeds to refinance existing debt, particularly the 6.75% Senior Notes due 2025, and to repay borrowings under its term loan facility, is likely to improve the company's debt profile and reduce interest expenses. This strategic financial management could be viewed positively by investors, potentially leading to a short-term positive impact on DKL's stock price.
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