By Paul A. Harris
St. Louis, June 5 - Holly Corp. priced a $200 million issue of 9 7/8% eight-year senior unsecured notes (B1/BB/) at 94.105 to yield 11% on Friday, according to an informed source.
The yield was printed 50 basis points beyond the wide end of the 10¼% to 10½% price talk. The issue price came nearly 2.9 points cheap to the discount talk, which set out 2 points to 3 points of original issue discount.
UBS Investment Bank was the left lead bookrunner. Banc of America Securities LLC and Goldman Sachs & Co. were joint bookrunners.
Proceeds will be used to fund the acquisition of the Tulsa Refinery from Sunoco and for general corporate purposes. Holly acquired the Tulsa Refinery for $65 million plus the market value of its inventories on June 1.
Holly is a Dallas-based independent energy refiner.
| Issuer: | Holly Corp.
|
| Face amount: | $200 million
|
| Proceeds: | $188.21 million
|
| Maturity: | June 1, 2017
|
| Security description: | Senior unsecured notes
|
| Left bookrunner: | UBS Investment Bank
|
| Joint bookrunners: | Banc of America Securities LLC, Goldman Sachs & Co.
|
| Coupon: | 9 7/8%
|
| Price: | 94.105
|
| Yield: | 11%
|
| Spread: | 734.5 bps
|
| Call features: | Callable on June 1, 2013 at 104.9375, 102.4688, par on and after June 1, 2015
|
| Equity clawback: | 35%, until June 15, 2012 at 109.875
|
| Trade date: | June 5
|
| Settlement date: | June 10
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 10¼% to 10½% with 2 points to 3 points of OID
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
