Delek US Holdings (DK) Announces Closure of $535M Retail Assets Sale

November 14, 2016 4:26 PM EST

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Delek US Holdings, Inc. (NYSE: DK) has closed the previously announced transaction to sell its retail related assets to a U.S. subsidiary of Compañía de Petróleos de Chile COPEC S.A. The assets sold included MAPCO Express, Inc., and certain related affiliated companies, (together “MAPCO”) for total cash consideration of $535.0 million plus MAPCO’s estimated cash on hand and working capital adjustment, totaling approximately $16.3 million.

At closing, $156.0 million of debt associated with MAPCO was repaid, along with a debt prepayment fee of $13.4 million and an estimated $4.6 million of transaction related costs. Net cash proceeds before taxes related to this Transaction are $377.3 million. Amounts disclosed above are subject to final cash and working capital adjustments. The estimated income tax payment related to this Transaction will occur in early 2017.

Uzi Yemin, Chairman, President and Chief Executive Officer of Delek said, “With the completion of this transaction, we have unlocked the value of our retail assets and improved our financial flexibility. We have gained a partner in retail fuel sales and will continue to supply certain locations under an 18-month fuel supply agreement. By continuing to utilize our wholesale business and our space on the Colonial pipeline system to serve these retail locations as we have in the past, our consolidated RINs position should not be significantly changed by this transaction. This financial flexibility can be used as we evaluate strategic opportunities to create long term value for our shareholders.”



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