Pipeline firm Delek Logistics slides on $150 mln equity offering

Delek Logistics Partners, LP

09/10/2024 12:22

** Shares of Delek Logistics Partners  DKL.N  down 9.7%
premarket to $40.35, a 6-week low, after overnight follow-on
priced
    ** Tennessee-based midstream master limited partnership
(MLP) late Tues sold ~3.8 mln units at $39 for $150 mln gross
raise
    ** Offering price represents 12.7% discount to stock's last
sale
    ** BofA, Barclays and RBC jt bookrunners
    ** DKL intends to use net proceeds to redeem its outstanding
convertible preferred units and pay down its revolver
    ** CEO Avigal Soreq and certain other executives indicated
interest to buy up to $300,000 worth of the units offered
    ** The MLPs parent, oil refiner Delek US Holdings Inc
 DK.N , not purchasing any units in offering
    ** As a result, the parent's ownership reduced from 70.4% to
65.2%
    ** DKL has ~47 mln common units outstanding for $2.1 bln
market cap
    ** Through Tues, stock up 3.5% YTD, including ~16% gain over
past 6 months

 (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))