Holly Energy Partners Announces Pricing of Public Offering of 1.457M Common Units at $53.50
Holly Energy Partners, L.P. (NYSE: HEP) announced today the pricing of the public offering of 1,475,000 common units representing limited partner interests in the Partnership. The common units were priced at $53.50 per common unit. In connection with the offering, the Partnership granted the underwriters a 30-day option to purchase up to 221,250 additional common units. The Partnership expects to close the sale of the common units on December 6, 2011.
The Partnership intends to use the net proceeds from the offering to pay a portion of the principal of the two promissory notes with an aggregate original principal amount of $150 million that the Partnership issued to wholly-owned subsidiaries of HollyFrontier Corporation in connection with the Partnership's acquisition of certain pipeline, tankage, loading rack and crude receiving assets located at HollyFrontier Corporation's El Dorado and Cheyenne refineries. The Partnership expects to use any remaining net proceeds to repay indebtedness incurred under its credit agreement and for general corporate purposes.
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