Delek Logistics Offering Prices at $50, Shares Slide 13% Premarket
DKL sits 25% above its 52-week low of $41.72.
Summary
Delek Logistics priced its 4-million-unit public offering at $50.00 per unit, raising $200 million in gross proceeds, but shares fell 13% to $52.25 in premarket trading Thursday. The offering was upsized from the originally announced $175 million, and underwriters have a 30-day option for 600,000 additional units. Proceeds will repay revolving credit borrowings and fund general partnership purposes. Notably, Delek US Holdings is not participating, so its ownership will drop from 63% to about 58%, a meaningful dilution signal. The stock's sharp decline reflects investor concern over the dilutive impact and the discount to the prior close. The offering is expected to settle and close on Friday.
At the time of this announcement, DKL was trading at $52.25 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $3.2B. The 52-week trading range was $41.72 to $61.50. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.