Holly Energy talks $500 million eight-year notes at 5%-5 1/8%; pricing Tuesday

By Abigail W. Adams

Portland, Me., Jan. 21 – Holly Energy Partners LP and Holly Energy Finance Corp. plan to price $500 million of eight-year senior notes (expected Ba2/BB+) in a Tuesday drive-by with talk for a yield of 5% to 5 1/8%, according to a market source.

Citigroup Global Markets Inc., BofA Securities Inc., TD Securities (USA) LLC, MUFG, Wells Fargo Securities LLC, and BBVA Securities Inc. are joint bookrunners for the Rule 144A and Regulation S for life offering.

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 Capital Markets are the co-managers.

The notes are non-callable for three years with first call at the coupon plus 75%.

There is a poison put at 101%.

Proceeds will be used to refinance the company’s existing senior notes due 2024.

Holly Energy is a Dallas-based petroleum and crude oil transport, terminalling and storage company serving the petroleum industry.

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