Holly Energy Partners (HEP) Prices 1.9M Units at $35.78/Unit

November 3, 2009 9:47 AM EST

Holly Energy Partners, L.P. (NYSE: HEP) announced today the pricing of the public offering of 1,900,000 common units representing limited partner interests in the Partnership. The common units were priced at $35.78 per common unit. In connection with the offering, the Partnership granted the underwriters a 30-day option to purchase up to 285,000 additional common units.

The Partnership expects to close the sale of the common units on November 6, 2009, subject to customary closing conditions. The Partnership intends to use a portion of the net proceeds from the offering to fund the cash portion of the purchase price for the pending acquisition of tankage, loading racks and pipeline assets at a refining facility in Tulsa, Oklahoma from Sinclair Tulsa Refining Company. The Partnership intends to use the remainder of the net proceeds either to pay a portion of the purchase price for the Partnership's potential acquisition from Holly Corporation of its investments in two pipeline projects (the recently constructed pipeline from Centurion Pipeline L.P.'s Slaughter station in west Texas to Lovington, New Mexico and a pipeline that connects the Partnership's Artesia crude gathering system to Holly Corporation's Lovington facility) pursuant to the Partnership's option to purchase those investments at prices to be negotiated with Holly Corporation or, instead, to repay bank debt, for other potential future acquisitions or for general partnership purposes. If the acquisition of the Sinclair assets does not close, the Partnership intends to use the net proceeds for one or more of the following: to pay for all or substantially all of the purchase price and related costs for the potential acquisitions from Holly Corporation described above, to repay bank debt incurred under the Partnership's credit agreement, for other potential future acquisitions or for general partnership purposes.

Goldman, Sachs & Co. and UBS Investment Bank acted as the joint book-running managers for the offering. SMH Capital acted as co-manager.

Related Categories

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Related Entities

• UBS
• SMH Capital
• Crude Oil

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