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"), have finalized the
terms of their previously announced tack-on offering of $100 million in
aggregate principal amount of 6% 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 offered are an additional issuance of the Partnership's
outstanding 6% Senior Notes due 2024, initially issued in an aggregate
principal amount of $400.0 million on July 19, 2016 (the "Existing
Notes"). The Notes will be issued at a price equal to 103.25% of the
principal amount, plus accrued interest from August 1, 2017. The Notes
will be issued under the same indenture as the Existing Notes and are
part of the same series. Additionally, like the Existing Notes, 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 which amounts may be reborrowed to
partially finance the Partnership's proposed transaction with Plains All
American Pipeline, L.P. to acquire its 50% interest in Frontier Aspen
LLC and its 75% interest in SLC Pipeline LLC. The offering is expected
to close on September 22, 2017, subject to customary closing 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, through its
subsidiaries and joint ventures, owns and/or 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 and Utah.
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. 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. Therefore, actual outcomes
and results could materially differ from what is expressed, implied or
forecast in these statements. Any differences could be caused by a
number of factors including, but 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 terminals;
• 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, including the pending transactions with Plains;
• 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/20170919006643/en/
Holly Energy Partners, L.P.
Craig Biery, 214-954-6511
Director,
Investor Relations
or
Jared Harding, 214-954-6511
Investor
Relations
Source: Holly Energy Partners, L.P.
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