Oil refiner Delek steadies after $400 million convertible bond sale
DK•Delek US Holdings priced a private offering of $400 million in 0% convertible senior notes due November 1, 2031. The conversion price is $85.31, 27.5% above Thursday’s last sale of $66.91.
1. Bond offering details
Delek US Holdings priced a private offering of $400 million in 0% convertible senior notes due November 1, 2031. The conversion price is $85.31, 27.5% above Thursday’s last sale of $66.91.
2. Use of proceeds
The company intends to use some proceeds to fund capped call transactions, with a cap price of $117.09, about 75% above the stock’s Thursday close. It said the offering is for general purposes, including partial repayment of a term loan.
3. Shares and analyst ratings
Delek shares fell 7.4% Thursday, their fifth straight day of declines, and were down 0.6% at $66.50 in premarket trading Friday. Through Thursday, the stock had risen nearly 126% year to date. The average rating of 13 analysts was “buy,” and the median price target was $72, up from $50 on June 25.
