Delek Logistics to price $400 million seven-year notes on Thursday

By Paul A. Harris

Portland, Ore., May 19 – Delek Logistics Partners, LP and Delek Logistics Finance Corp. plan to price a $400 million offering of seven-year senior notes (confirmed B3/expected BB-/confirmed BB-) on Thursday, according to syndicate sources.

The deal, which was scheduled to kick off on a Wednesday morning conference call with investors, is in the market with initial price talk in the low-to-mid 7% area.

Wells Fargo Securities LLC is the left bookrunner. RBC Capital Markets LLC, PNC Capital Markets LLC and Barclays are the joint bookrunners.

Citizens Capital Markets Inc., Truist Securities Inc., MUFG and Fifth Third Securities Inc. are the senior co-managers. Regions Securities LLC, U.S. Bancorp Investments Inc. and Evercore are the co-managers.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon.

The Brentwood, Tenn.-based energy master limited partnership plans to use the proceeds to repay its revolver and for general corporate purposes.

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