DALLAS--(BUSINESS WIRE)--
Holly Energy Partners, L.P. (NYSE: HEP) (the "Partnership") announced
today that it and its wholly owned subsidiary, Holly Energy Finance
Corp. (together with the Partnership, the "Issuers"), intend to commence
an offering of $300 million in aggregate principal amount of senior
notes due 2024 (the "Notes") in a private placement under Rule 144A and
Regulation S of the Securities Act of 1933, as amended (the "Securities
Act") to eligible purchasers. The Notes will initially be fully and
unconditionally guaranteed on a senior unsecured basis by the
Partnership's existing wholly owned domestic subsidiaries (other than
Holly Energy Finance Corp.). The Partnership intends to use the net
proceeds from the offering to repay indebtedness under its revolving
credit agreement. The final terms and principal amount of the Notes are
subject to market and other conditions.
The Notes and the related guarantees have not been registered under the
Securities Act, or any state securities laws, and unless so registered,
may not be offered or sold in the United States except pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act and applicable state securities laws.
The Issuers plan to offer and sell the notes only to qualified
institutional buyers pursuant to Rule 144A under the Securities Act and
to persons outside the United States pursuant to Regulation S under the
Securities Act.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the securities described herein, nor
shall there be any sale of these securities in any state or jurisdiction
in which such an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction.
About Holly Energy Partners, L.P.
Holly Energy Partners, L.P., headquartered in Dallas, Texas, provides
petroleum product and crude oil transportation, terminalling, storage
and throughput services to the petroleum industry, including
HollyFrontier Corporation subsidiaries. The Partnership owns and
operates petroleum product and crude gathering pipelines, tankage and
terminals in Texas, New
Mexico, Arizona, Washington, Idaho, Oklahoma, Utah, Nevada,
Wyoming and Kansas as well as refinery processing units in Kansas. In
addition, the Partnership owns a 75% interest in UNEV Pipeline, LLC, the
owner of a Holly Energy operated refined products pipeline running
from Woods Cross, Utah to Las Vegas, Nevada, and related product
terminals, a 50% interest in Osage Pipe Line Company, LLC, which owns a
135-mile crude oil pipeline from Cushing, Oklahoma to El Dorado, Kansas,
a 50% interest in Frontier Aspen LLC, which owns a 289-mile crude oil
pipeline from Casper, Wyoming to Frontier Station, Utah, a 50% interest
in Cheyenne Pipeline LLC, which owns an 87-mile crude oil pipeline from
Fort Laramie, Wyoming to Cheyenne, Wyoming, and a 25% interest in SLC
Pipeline LLC which owns a 95-mile intrastate pipeline system serving
refineries in the Salt Lake City, Utah area.
The statements in this press release relating to matters that are not
historical facts are "forward-looking statements" within the meaning of
the federal securities laws. Forward-looking statements use words such
as "anticipate," "project," "expect," "plan," "goal," "forecast,"
"intend," "should," "would," "could," "believe," "may," and similar
expressions and statements regarding our plans and objectives for future
operations. These statements are based on our beliefs and assumptions
and those of our general partner using currently available information
and expectations as of the date hereof, are not guarantees of future
performance and involve certain risks and uncertainties. Although we and
our general partner believe that such expectations reflected in such
forward-looking statements are reasonable, neither we nor our general
partner can give assurance that our expectations will prove to be
correct. All statements concerning our expectations for future results
of operations are based on forecasts for our existing operations and do
not include the potential impact of any future acquisitions. Our
forward-looking statements are subject to a variety of risks,
uncertainties and assumptions. If one or more of these risks or
uncertainties materialize, or if underlying assumptions prove incorrect,
our actual results may vary materially from those anticipated,
estimated, projected or expected. Certain factors could cause actual
results to differ materially from results anticipated in the
forward-looking-statements. These factors include, but are not limited
to:
-
risks and uncertainties with respect to the actual quantities of
petroleum products and crude oil shipped on our pipelines and/or
terminalled, stored and throughput in our terminal, tankage and
loading rack facilities, and processed in our refinery processing
units;
-
the economic viability of HollyFrontier Corporation, Alon USA,
Inc. and our other customers;
-
the demand for refined petroleum products in markets we serve;
-
our ability to purchase and integrate future acquired operations;
-
our ability to complete previously announced or contemplated
acquisitions;
-
the availability and cost of additional debt and equity financing;
-
the possibility of reductions in production or shutdowns at refineries
utilizing our pipeline and terminal facilities;
-
the effects of current and future government regulations and policies;
-
our operational efficiency in carrying out routine operations and
capital construction projects;
-
the possibility of terrorist attacks and the consequences of any such
attacks;
-
general economic conditions; and
-
other financial, operational and legal risks and uncertainties
detailed from time to time in our Securities and Exchange
Commission filings.
The forward-looking statements speak only as of the date made and, other
than as required by law, we undertake no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160712005814/en/
Holly Energy Partners, L.P.
Richard L. Voliva III, 214-954-6511
Vice
President and
Chief Financial Officer
or
Julia
Heidenreich, 214-954-6511
Vice President, Investor Relations
or
Craig
Biery, 214-954-6511
Investor Relations
Source: Holly Energy Partners, L.P.
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