Delek Logistics to fund dropdown of trucking assets via revolver, cash

Chicago, May 18 – Delek Logistics Partners, LP has agreed for the dropdown of some trucking assets from Delek US Holdings Inc. for a total consideration of $48 million in cash, effective May 1.

The purchase will be funded from cash and borrowings from its revolving credit facility, according to a press release.

Following the transaction, Delek Logistics will have about $107 million available on its revolver.

The trucking assets include 150 tractors and 150 trailers, which are primarily leased and owned.

Prior to the dropdown, Delek Logistics owned or leased 123 tractors and 174 trailers.

Delek US, through a 10-year services agreement, will provide a trucking services agreement to Delek Logistics on the trucking assets.

Delek Logistics has headquarters in Brentwood, Tenn., and was formed by Delek US Holdings Inc. to own, operate, acquire and construct crude oil and refined products logistics and marketing assets.

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