Pipeline co Delek Logistics slides on $200 mln equity offering
DKL•Delek Logistics falls after follow-on offering pricing
Shares of Delek Logistics Partners DKL.N were down 12.2% at $52.66 premarket on Thursday after the partnership priced a $200 million follow-on offering.
The Tennessee-based midstream master limited partnership early Thursday announced 4 million common units at $50.
The offering size was boosted from $175 million and priced at a 16.7% discount to the stock's last close.
The company said it intends to use net offering proceeds to repay its revolver, and for general partnership purposes.
Truist, Mizuho and Raymond James were joint bookrunners.
The company's parent, oil refiner Delek US Holdings DK.N, did not buy units in the offering; as a result, Delek Holdings' ownership was reduced by 5% to 58%.
The MLP has about 53.2 million common units outstanding.
Through Wednesday, DKL was up 34% year to date.
The average rating of five analysts is "hold"; median price target is $56, according to LSEG data.
