Pipeline firm Delek Logistics slides after launching $150 mln equity offering

Delek US Holdings

08/10/2024 22:04

** Shares of Delek Logistics Partners  DKL.N  down 8.2% at
$41 in extended trading as co looks to raise equity
    ** Tennessee-based midstream master limited partnership
(MLP) commences $150 mln common units offering
    ** 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 mln of offering
    ** Its parent, oil refiner Delek US Holdings  DK.N , has
70.4% limited partnership interest in DKL, per the SEC filing
    ** The MLP has ~47 mln common units outstanding for $2.1 bln
market cap
    ** DKL's stock on Tues closed down 0.6% at $44.67. Shares 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))