Holly Energy Partners L.P.
) - subsidiary of oil refiner and marketer
) - recently announced a public offering of 1,875,000 common
units to increase its liquidity. Simultaneously, HollyFrontier
Corporation and some of its affiliates will also sell 1,875,000
common units as selling unit holders. The units were priced at
$40.80 a piece.
The partnership also offered a 30-day option to the underwriters
to purchase 281,250 additional units from them and up to 281,250
additional common units from the selling unit holders.
Holly Energy plans to use the proceeds to clear the debt under
its credit facility and for other partnership purposes. The
amount repaid may be borrowed again by the partnership to finance
capital expenditures related to the expansion of crude oil
transportation system in southeastern New Mexico. Total
expenditure of the same is expected at $35-$40 million.
The offering is expected to close on Mar 22, 2013. Holly Energy
will not get any of the takings from the common units sold by
Holly Energy currently retains a Zacks Rank #2 (Buy), implying
that it is expected to outperform the broader U.S. equity market
over the next 1 to 3 months.
Holly Energy Partners is a master limited partnership (MLP) that
operates petroleum product and crude oil pipelines, storage
tanks, distribution terminals and loading rack facilities.
As of Dec 31, 2012, company had cash and cash equivalents of
$5,237,000 and long-term debt of $864,674,000.
Other pipeline operators that offer value and are worth buying
Oiltanking Partners L.P.
EQT Midstream Partners LP
). Both the stocks carry a Zacks Rank #2 (Buy).
EQT MIDSTRM PTR (EQM): Free Stock Analysis
HOLLY EGY PTNRS (HEP): Free Stock Analysis
HOLLYFRONTIER (HFC): Free Stock Analysis
OILTANKING PTNR (OILT): Free Stock Analysis
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