Brief: Hollyfrontier Corporation And Holly Energy Partners Announce Combination With Sinclair Oil And Formation Of Hf Sinclair Corporation

Holly Energy Partners LP

03/08/2021 11:29

Aug 3 (Reuters) - Holly Energy Partners LP  HEP.N :
    * HOLLYFRONTIER CORPORATION AND HOLLY ENERGY PARTNERS
ANNOUNCE
COMBINATION WITH SINCLAIR OIL AND FORMATION OF HF SINCLAIR
CORPORATION
    * HOLLYFRONTIER CORP - CO WILL FORM NEW PARENT COMPANY,
NAMED "HF
SINCLAIR CORPORATION", WHICH WILL REPLACE CO AS PUBLIC CO
TRADING ON NYSE
    * HOLLYFRONTIER CORP - EXISTING SHARES OF HOLLYFRONTIER WILL
AUTOMATICALLY CONVERT ON A ONE-FOR-ONE BASIS INTO SHARES OF
COMMON STOCK OF HF SINCLAIR
    * HOLLYFRONTIER CORP - HF SINCLAIR WILL ISSUE ABOUT 60.2
MILLION
SHARES TO SINCLAIR WITH TRANSACTION VALUE OF APPROXIMATELY $1.8
BILLION
    * HOLLYFRONTIER CORP - HF SINCLAIR WILL ISSUE ABOUT 60.2
MILLION
SHARES OF COMMON STOCK TO SINCLAIR, REPRESENTING 26.75% OF PRO
FORMA EQUITY OF HF SINCLAIR
    * HOLLYFRONTIER CORP - TRANSACTION IS EXPECTED TO BE
ACCRETIVE TO
HF SINCLAIR'S EARNINGS, CASH FLOW AND FREE CASH FLOW WITHIN
FIRST FULL YEAR
    * HOLLYFRONTIER CORP - UPON CLOSING, HOLLYFRONTIER'S
EXISTING
SENIOR MANAGEMENT TEAM WILL OPERATE COMBINED COMPANY
    * HOLLYFRONTIER - DEAL EXPECTED TO GENERATE $100 MILLION IN
RUN-RATE SYNERGIES, & ANOTHER $100-200 MILLION IN ONE-TIME
SAVINGS DURING FIRST TWO YEARS POST CLOSE
    * HOLLYFRONTIER CORP - CO WILL ACQUIRE SINCLAIR'S BRANDED
MARKETING BUSINESS, RENEWABLE DIESEL BUSINESS & TWO ROCKY
MOUNTAIN-BASED REFINERIES
    * HOLLYFRONTIER CORP - SINCLAIR WILL BE GRANTED RIGHT TO
NOMINATE
TWO DIRECTORS TO HF SINCLAIR BOARD OF DIRECTORS AT CLOSING
    * HOLLYFRONTIER CORP - UNDER TERMS OF HEP TRANSACTION, HEP
WILL
ACQUIRE SINCLAIR'S INTEGRATED CRUDE AND REFINED PRODUCTS
PIPELINES AND TERMINAL ASSETS
    * HOLLYFRONTIER CORP - PURCHASE PRICE FOR HEP TRANSACTION
WILL
CONSIST OF AN EQUITY ISSUANCE OF 21 MILLION HEP COMMON UNITS AND
PAYMENT OF $325 MILLION OF CASH
    * HOLLYFRONTIER CORP - UPON CLOSING OF HEP TRANSACTION,
HEP'S
EXISTING SENIOR MANAGEMENT TEAM WILL CONTINUE TO OPERATE HEP
    * HOLLYFRONTIER CORP - SINCLAIR WILL BE GRANTED RIGHT TO
NOMINATE
ONE DIRECTOR TO HEP BOARD OF DIRECTORS AT CLOSING
    * HOLLYFRONTIER CORP - HEP WILL CONTINUE TO OPERATE UNDER
NAME
HOLLY ENERGY PARTNERS, L.P.

Source text for Eikon:  ID:nBw4G6J6Ka 
Further company coverage:  HEP.N 

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