By Sheri Kasprzak
Atlanta, June 13 - Holly Energy Partners LP said it intends to raise a maximum of $35 million as part of its acquisition of pipelines from Holly Corp.
The company plans to sell 1.2 million shares at $29.166 each to institutional investors.
The proceeds from the offering will be used to finance the cash portion of Holly Energy's acquisition of an intermediate feedstock pipeline that connects the company's Lovington, N.M., and Artesia, N.M., refineries. The acquisition is expected to cost $81.5 million.
The company said it expects to sign definitive agreements on the private placement in the next two weeks and it expects to close the acquisition in July.
Based in Dallas, Holly Energy provides refined petroleum product transportation and terminal services. Holly Corp., also based in Dallas, is a petroleum refiner.
| Issuer: | Holly Energy Partners LP
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| Issue: | Stock
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| Amount: | $35 million (maximum)
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| Shares: | 1.2 million (maximum)
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| Price: | $29.166
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| Warrants: | No
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| Pricing date: | June 13
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| Stock price: | $43.40 at close June 13
|
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