Holly Energy Partners LP (NYSE: HEP) along with its subsidiary, Holly Energy Finance Corp., said it will offer an additional $100 million in aggregate principal amount of senior notes due 2024, on Sept. 19.
The partnership intends to use the net proceeds from the offering to repay indebtedness under its revolving credit agreement which amounts may be borrowed again to partially finance its proposed transaction with Plains All American Pipeline LP to acquire its 50% interest in Frontier Aspen LLC and its 75% interest in SLC Pipeline LLC. The final terms and principal amount of the notes are subject to market and other conditions.
The offer will be in a private placement under the Securities Act of 1933, as amended to eligible purchasers. The notes offered are an additional issuance of the partnership’s outstanding 6% senior notes due 2024, issued in an aggregate principal amount of $400 million on July 19, 2016.
The notes will be issued under the same indenture as the existing notes and are part of the same series. Additionally, like the existing notes, the notes will initially be fully and unconditionally guaranteed on a senior unsecured basis by the partnership’s existing wholly owned domestic subsidiaries.
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