Holly Energy Partners LP

Holly Energy Partners LP said that it and its wholly-owned subsidiary, Holly Energy Finance Corp. have finalized the terms of their previously announced offering of $500 million in aggregate principal amount of 5.0% senior notes due 2028 in a private placement under Rule 144A and Regulation S of the Securities Act of 1933, as amended to eligible purchasers.

The 2028 notes will be issued at a price equal to 100% of the principal amount thereof. The 2028 notes will initially be fully and unconditionally guaranteed on a senior unsecured basis by the partnership’s existing wholly-owned subsidiaries. The partnership intends to use the net proceeds from the offering, together with borrowings under its revolving credit agreement, to fund the previously announced conditional redemption of all of the Issuers’ currently outstanding 6.0% senior notes due 2024 and pay related expenses.