Delek US Holdings’ $315 Million Sale of Logistics Assets to Delek Logistics Partners, LP


Baker Botts advised Delek US Holdings, Inc. on the deal

Delek US Holdings, Inc. (NYSE: DK) announced on February 26, 2018 that it has entered into a definitive agreement with Delek Logistics Partners, LP (NYSE: DKL) whereby Delek Logistics would acquire logistics assets from Delek US, subject to customary closing conditions. These assets consist of storage tanks and terminals that support Delek US’ Big Spring, Texas refinery.

The purchase price is approximately $315.0 million in cash. This dropdown is expected to be financed through a combination of cash on hand and borrowings on the revolving credit facility and is expected to close in March with an effective date of March 1, 2018.

In connection with the closing of the transaction, Delek US, Delek Logistics and various of their subsidiaries will enter into various long-term agreements for these assets. In addition, a new marketing agreement will be entered into between the companies for product sales from Big Spring.

The transaction and related agreements were approved by the Conflicts Committee of Delek Logistics’ general partner, which is comprised solely of independent directors. The Conflicts Committee engaged Duff & Phelps to act as its financial advisor and Orrick, Herrington & Sutcliffe LLP to act as its legal counsel. J.P. Morgan Securities LLC served as exclusive financial advisor to Delek US. Baker Botts represented Delek US in the transaction.

Delek US Holdings, Inc. operates as a holding company. The Company, led by Ezra Uzi Yemin, Kevin L Kremke and Frederec C Green, – through its subsidiaries – focuses on the petroleum refining, logistics, and convenience store retailing. In 2017 Delek US Holdings, Inc. recorded $7.267 Million revenues.

Baker Botts advised Delek US Holdings, Inc. with a team including

A.J. Ericksen (Picture, Houston), Leslie Daniel (Associate, Houston), Bill Pritchett (Associate, Houston), Mitch Athey (Corporate); Mike Bresson (Partner, Houston), Matthew Larsen (Partner, Dallas), Jared Meier (Senior Associate, Houston), Jacob Walley (Tax); Dan Mark (Energy) and Scott Janoe (Environmental).

Involved fees earner: A.J. Ericksen – Baker Botts; Leslie Daniel – Baker Botts; Bill Pritchett – Baker Botts; Mitch Athey – Baker Botts; Michael Bresson – Baker Botts; Matthew Larsen – Baker Botts; Jared Meier – Baker Botts; Jacob Walley – Baker Botts; Dan Mark – Baker Botts; Scott Janoe – Baker Botts;

Law Firms: Baker Botts;

Clients: Delek US Holdings, Inc.;

Avatar

Author: Ambrogio Visconti