Pipeline co Delek Logistics tumbles on $175 mln equity offering launch
DKL•Use of proceeds and underwriting
The company said it intends to use net offering proceeds to repay its revolver, and for general partnership purposes.
Truist, Mizuho and Raymond James are joint bookrunners.
Parent ownership and market context
Its parent, oil refiner Delek US Holdings DK.N, has a 63% limited partnership interest in DKL, according to the prospectus.
The MLP has about 53.2 million common units outstanding for a $3.2 billion market cap.
DKL shares finished up 2.5% at $60 on Wednesday, up 34% year to date.
The average rating of five analysts is hold; median price target is $56, according to LSEG data.
Shares fall after planned equity raise
Shares of Delek Logistics Partners DKL.N were down 13.3% to $52 post-market on news of a planned equity raise.
Tennessee-based midstream master limited partnership (MLP) launches a $175 million common units offering.
