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Delek Logistics moves higher in Big Board debut

by Claire Poole  |  Published November 2, 2012 at 5:10 PM
Delek Logistics Partners LP's shares jumped 6.4% in their debut on the New York Stock Exchange Friday, Nov. 2, to close at $22.35 per unit. The Brentwood, Tenn.-based company priced the 8 million units Nov. 1 at $21 per unit, the upper-end of their expected $19 to $21 per unit range. The underwriters were granted the option to buy up to 1.2 million more units at the same price to cover possible over-allotments. The offering is expected to close by Wednesday, when the public will own a 32.7% limited partner interest in Delek Logistics or 37.6% if the underwriters exercise their option in full. Delek Logistics plans to use the $145.3 million in net proceeds to fund a $57.8 million cash distribution to Delek US Holdings, retire $50.9 million of debt under its predecessor's revolving credit facility and to provide $35 million in working capital to replenish amounts distributed to Delek US Holdings. Bank of America Merrill Lynch, Barclays plc, Goldman, Sachs & Co. and Wells Fargo Securities LLC are joint bookrunning managers and Deutsche Bank Securities Inc., Raymond James Financial Inc. and Simmons & Co. International are co-managers. Delek Logistics was formed by Delek US Holdings to own, operate, acquire and build crude oil and refined products logistics and marketing assets. Gerald Spedale at Baker Botts LLP is advising Delek Logistics and Catherine Gallagher and Adorys Velazquez at Vinson & Elkins LLP are assisting the underwriters.
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