Delek Logistics Partners LP (DKL) has announced the pricing for its public offering of approximately 3.85 million common units, which represent limited partner interests, at a price of $39.00 per unit. The company has also extended a 30-day option to the underwriters, allowing them to purchase an additional 576,922 common units if desired.
The net proceeds from this offering are slated for use in redeeming the company's outstanding convertible preferred units and for repaying debt under its revolving credit facility.
It is important to note that Delek US Holdings, Inc. will not be purchasing any of the units offered in this transaction. Consequently, Delek Holdings' stake in Delek Logistics will decrease from 70.4% to approximately 65.2% after the sale is completed, based on an as-converted basis.
Both Avigal Soreq, the President and CEO, along with several company executives, have expressed an interest in acquiring up to $300,000 worth of common units at the public offering price.
The settlement and closure of the offering are anticipated to occur on October 10, 2024, pending the fulfillment of standard closing conditions.
On Tuesday, DKL's regular trading concluded with the stock priced at $44.67, marking a decline of $0.28 or 0.62%. The stock experienced a further drop in after-hours trading, decreasing by $3.35 or 7.50%.
