Holly Energy Partners Announces Offering of 1.875M Common Units

Holly Energy Partners, L.P. (NYSE: HEP) announced today that it intends tooffer 1,875,000 common units representing limited partner interests in anunderwritten public offering. In addition, HollyFrontier Corporation (NYSE: HFC) and certain of its affiliates are collectively offering 1,875,000 commonunits in the offering as selling unitholders. The underwriters are expected tobe granted a 30-day option to purchase up to 281,250 additional common unitsfrom us and 281,250 additional common units from the selling unitholders. Weintend to use the net proceeds from the offering by us to repay indebtednessincurred under our credit facility and for general partnership purposes.Amounts repaid under our credit facility may be reborrowed from time to time,and we intend to reborrow certain amounts to fund capital expenditures inconnection with our expansion of our crude oil transportation system insoutheastern New Mexico, which are currently estimated to be approximately $35million to $40 million. Holly Energy Partners will not receive any of theproceeds from the common units sold by the selling unitholders.