Delek Logistics tumbles on $120 mln equity raise

Delek Logistics Partners, LP

08/03/2024 13:43

** Delek Logistics Partners'  DKL.N  stock down 10.2%
premarket at $40, over 6-month low, after pipeline firm's
overnight follow-on priced
    ** The master limited partnership (MLP) late Thurs announced
~3.2 mln units at $38.50 for $120 mln raise
    ** Offering priced at 13.6% discount to last sale
    ** The MLP to use net proceeds to pay down debt under its
revolver
    ** Its parent, oil refiner Delek US Holdings Inc  DK.N ,
will not be buying any units in the offering, the MLP said
    ** As a result, Delek Holdings' ownership of outstanding
Delek Logistic units (43.62 mln) decline from 78.7% to 73.4%
    ** Through Thurs close, DKL units lost ~13 over the past 12
months 
    ** Truist, BofA and Raymond James are jt bookrunners for the
offering

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))