DALLAS--(BUSINESS WIRE)--
HollyFrontier Corporation (NYSE:HFC) (“HollyFrontier” or the
“Company”) today announced that it has priced an offering of $750
million of its 5.875% Senior Notes that will mature April 1, 2026 (the
“Additional Senior Notes”), pursuant to an effective shelf registration
statement that was previously filed with the Securities and Exchange
Commission. The Additional Senior Notes are being offered as additional
notes to the Company’s outstanding 5.875% Senior Notes due 2026, which
the Company sold in a public offering in March 2016 in an aggregate
principal amount of $250 million. The Additional Senior Notes will be
issued at a price equal to 100.098% of the principal amount thereof,
plus accrued interest from October 1, 2016, resulting in a yield to
maturity of 5.860%.
The Company intends to use the net proceeds from the offering to prepay
its $350 million term loan and for general corporate purposes, which may
include a portion of the purchase price for Petro-Canada Lubricants Inc.
and capital expenditures.
Interest on the Additional Senior Notes will be payable on April 1 and
October 1 of each year. The first interest payment on the Additional
Senior Notes will be due on April 1, 2017, and will consist of interest
from October 1, 2016 to that date. The offering is expected to close on
November 21, 2016, subject to customary closing conditions.
Citigroup Global Markets Inc., Goldman, Sachs & Co., Merrill Lynch,
Pierce, Fenner & Smith Incorporated, MUFG Securities Americas Inc. and
TD Securities (USA) LLC are acting as joint book-running managers for
the offering. The offering is being made only by means of a prospectus
supplement and accompanying prospectus, copies of which may be obtained
from:
Citigroup Global Markets Inc.
c/o Broadridge Financial Solutions
1155
Long Island Avenue
Edgewood, New York 11717
Toll-free:
1-800-831-9146
E-mail: prospectus@citi.com
Goldman, Sachs & Co.
Prospectus Department
200 West Street
New
York, New York 10282
Toll-free: 1-866-471-2526
E-mail: prospectus-ny@ny.email.gs.com
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Attn:
Prospectus Department
200 North College Street, 3rd Floor
NC1-004-03-43
Charlotte,
North Carolina 28255-0001
Toll-free: 1-800-294-1322
E-mail: dg.prospectus_requests@baml.com
MUFG Securities Americas Inc.
1221 Avenue of the Americas, 6th
Floor
New York, New York 10020
Toll-free: 1-877-649-6848
E-mail:
prospectus@us.sc.mufg.jp
TD Securities (USA) LLC
31 W 52nd Street
New York,
New York 10019
Toll-free: 1-855-495-9846
An electronic copy of the prospectus supplement and accompanying
prospectus will also be available on the website of the Securities and
Exchange Commission at www.sec.gov.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
Additional Senior Notes in any state or jurisdiction in which such
offer, solicitation or sale of the Additional Senior Notes would be
unlawful prior to registration or qualification under the securities
laws of any such state or jurisdiction.
About HollyFrontier Corporation
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 operates through its subsidiaries a
135,000 barrels per stream day (“BPSD”) refinery located in El Dorado,
Kansas, two refinery facilities with a combined capacity of 125,000 BPSD
located in Tulsa, Oklahoma, a 100,000 BPSD refinery located in Artesia,
New Mexico, a 52,000 BPSD refinery located in Cheyenne, Wyoming and a
45,000 BPSD refinery in Woods Cross, Utah. HollyFrontier markets its
refined products principally in the Southwest U.S., the Rocky Mountains
extending into the Pacific Northwest and in other neighboring Plains
states. A subsidiary of HollyFrontier also owns a 39% interest
(including the general partner interest) in Holly Energy Partners, L.P.
The following is a "safe harbor" statement under the Private
Securities Litigation Reform Act of 1995: The statements in this press
release relating to matters that are not historical facts are
"forward-looking statements" based on management's beliefs and
assumptions using currently available information and expectations as of
the date hereof, are not guarantees of future performance and involve
certain risks and uncertainties, including those contained in our
filings with the Securities and Exchange Commission. Although we believe
that the expectations reflected in these forward-looking statements are
reasonable, we cannot assure you that our expectations will prove
correct. Therefore, actual outcomes and results could materially differ
from what is expressed, implied or forecast in such statements. Any
differences could be caused by a number of factors, including, but not
limited to, risks and uncertainties with respect to the actions of
actual or potential competitive suppliers of refined petroleum products
in the Company's markets, the demand for and supply of crude oil and
refined products, the spread between market prices for refined products
and market prices for crude oil, the possibility of constraints on the
transportation of refined products, the possibility of inefficiencies,
curtailments or shutdowns in refinery operations or pipelines, effects
of governmental and environmental regulations and policies, the
availability and cost of financing to the Company, the effectiveness of
the Company's capital investments and marketing strategies, the
Company's efficiency in carrying out construction projects, the ability
of the Company to acquire refined product operations or pipeline and
terminal operations on acceptable terms and to integrate any future
acquired operations, the possibility of terrorist attacks and the
consequences of any such attacks, general economic conditions and other
financial, operational and legal risks and uncertainties detailed from
time to time in the Company's Securities and Exchange
Commission filings. The forward-looking statements speak only as of the
date made and, other than as required by law, we undertake no obligation
to publicly update or revise any forward-looking statements, whether as
a result of new information, future events or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161116006723/en/
Source: HollyFrontier Corporation