New Issue: Holly Energy prices $500 million eight-year notes at par to yield 5%

By Paul A. Harris

Portland, Ore., Jan. 21 – Holly Energy Partners, LP and Holly Energy Finance Corp. priced a $500 million issue of eight-year senior notes (B1/BB) at par to yield 5% in a Tuesday drive-by, according to a syndicate source.

The yield printed at the tight end of the 5% to 5 1/8% yield talk.

Citigroup Global Markets Inc. was the lead bookrunner. Joint bookrunners were BofA Securities Inc., TD Securities (USA) LLC, MUFG, Wells Fargo Securities LLC and BBVA Securities Inc.

The Dallas-based company plans to use the proceeds, plus a draw on its revolving credit facility, to refinance its existing 2024 notes.

Holly Energy provides product transportation, terminalling, storage and throughput services to the petroleum industry.

Issuers:	Holly Energy Partners, LP and Holly Energy Finance Corp.
Amount:	$500 million
Maturity:	Feb. 1, 2028
Securities:	Senior notes
Lead bookrunner:	Citigroup Global Markets Inc.
Joint bookrunners:	BofA Securities Inc., TD Securities (USA) LLC, MUFG, Wells Fargo Securities LLC and BBVA Securities Inc.
Co-managers:	BNP Paribas Securities Corp., Fifth Third Securities Inc., PNC Capital Markets LLC, Citizens Capital Markets Inc., Comerica Securities Inc., Capital One Securities Inc., ABN Amro Inc. and CIT
Coupon:	5%
Price:	Par
Yield:	5%
Spread:	323 bps
Call protection:	Three years
Trade date:	Jan. 21
Settlement date:	Feb. 4
Ratings:	Moody's: B1
	S&P: BB
Distribution:	Rule 144A and Regulation S for life
Price talk:	5% to 5 1/8%
Marketing:	Quick to market

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