Delek Logistics Partners, LP (DKL) has revealed its pricing for a public offering of 3.12 million common units. These units, which represent limited partner interests in Delek Logistics, are priced at $38.50 per unit. The offering is set to settle and close on March 12, 2024.
The underwriters have also been granted a 30-day option by Delek Logistics to purchase up to 467,532 additional common units. The net proceeds from this offering, including any profits from the underwriters' use of their option to purchase extra common units, will be utilized to repay outstanding borrowings under the company's revolving credit agreement.
The company has clarified that Delek US Holdings, Inc. will not be purchasing any of the common units presented in the offering. Consequently, Delek Holdings' ownership of the existing Delek Logistics common units will decrease from 78.7%, before the offering, to around 73.4% following the offering.
