HollyFrontier and HEP’s Acquisition of Sinclair Oil Corporation and Sinclair Transportation Company

Wachtell, Lipton, Rosen & Katz advised HollyFrontier and HEP on the deal. Morgan, Lewis & Bockius advised HollyFrontier. Bracewell served as HEP’s legal counsel and Morris, Nichols, Arsht & Tunnell, as the HEP Conflicts Committee’s legal counsel on the deal.

HollyFrontier Corporation (NYSE: HFC) and Holly Energy Partners, L.P. (NYSE: HEP) have entered into definitive agreements to acquire Sinclair Oil Corporation and Sinclair Transportation Company from The Sinclair Companies. As part of the transaction, HollyFrontier will form a new parent company, named “HF Sinclair Corporation”, which will replace HollyFrontier as the public company trading on the NYSE.

The purchase price for the HFC transaction will consist of approximately 60.2 million shares of HF Sinclair common stock to Sinclair, representing 26.75% of the pro forma equity of HF Sinclair with a transaction value of approximately $1.8 billion. The purchase price for the HEP transaction will consist of an equity issuance of 21 million HEP common units and the payment of $325 million of cash, subject to customary closing adjustments, representing a transaction value of approximately $758 million.

Citi is serving as financial advisor to HollyFrontier. Bank of America Merrill Lynch is serving as financial advisor to the HEP Conflicts Committee.

HollyFrontier Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel, jet fuel and other specialty products. HollyFrontier owns and operates refineries located in Kansas, Oklahoma, New Mexico, and Utah and markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states.

Holly Energy Partners, L.P., headquartered in Dallas, Texas, provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including HollyFrontier Corporation subsidiaries.

Wachtell Lipton’s team was led by partners David A. Katz (Picture), Nelson O. Fitts and Elina Tetelbaum and included Brian H. Junquera, Associate (Corporate), Emily E. Samra, Associate (Antitrust).

Morgan Lewis partner Benjamin Wills and associates Conor Larkin and Rob Powers represented HollyFrontier, along with partners Jim McKenzie, Greg Hartker, Sarah-Jane Morin, Anita Polott, Erin Randolph-Williams, August Heckman, Doneld Shelkey, and Stephen Fitzgerald, of counsel Jeffrey Hurwitz and Eric Marcuson, senior counsel Judith Walkoff, and associates John Mickles, Maddy Anand, Matthew Sherman, Brian Soares, Samuel Bryant, Ashley Chilton, Melissa Brown, and Natacha Massih.

Involved fees earner: William Anderson – Bracewell LLP; Shannon Baldwin – Bracewell LLP; Jared Berg – Bracewell LLP; Caroline Ellis – Bracewell LLP; Jason Jean – Bracewell LLP; Kirk Morgan – Bracewell LLP; Kathryn Penry – Bracewell LLP; Daniel Pope – Bracewell LLP; Timothy Wilkins – Bracewell LLP; Madhumita Anand – Morgan Lewis & Bockius; Samuel Bryant – Morgan Lewis & Bockius; Ashley Chilton – Morgan Lewis & Bockius; Stephen Fitzgerald – Morgan Lewis & Bockius; Gregory Hartker – Morgan Lewis & Bockius; August Heckman – Morgan Lewis & Bockius; Jeffrey Hurwitz – Morgan Lewis & Bockius; Conor Larkin – Morgan Lewis & Bockius; Eric Marcuson – Morgan Lewis & Bockius; Natacha Massih – Morgan Lewis & Bockius; James McKenzie – Morgan Lewis & Bockius; John Mickles – Morgan Lewis & Bockius; Sarah-Jane Morin – Morgan Lewis & Bockius; Anita Polott – Morgan Lewis & Bockius; Robert Powers – Morgan Lewis & Bockius; Erin Randolph-Williams – Morgan Lewis & Bockius; Doneld Shelkey – Morgan Lewis & Bockius; Matthew Sherman – Morgan Lewis & Bockius; Brian Soares – Morgan Lewis & Bockius; Judith Walkoff – Morgan Lewis & Bockius; Benjamin Wills – Morgan Lewis & Bockius; Nelson Fitts – Wachtell, Lipton, Rosen & Katz; Brian Junquera – Wachtell, Lipton, Rosen & Katz; David Katz – Wachtell, Lipton, Rosen & Katz; Emily Samra – Wachtell, Lipton, Rosen & Katz; Elina Tetelbaum – Wachtell, Lipton, Rosen & Katz;

Law Firms: Bracewell LLP; Morgan Lewis & Bockius; Wachtell, Lipton, Rosen & Katz;

Clients: Holly Energy Partners, L.P.; HollyFrontier Corporation;

Author: Martina Bellini