Delek US priced a $400 million offering of 0.00% convertible senior notes due 2031. The notes mature on November 1, 2031, unless earlier converted, redeemed or repurchased, and they will not bear regular interest, with their principal amount not accreting. The initial conversion rate is 11.7219 shares per $1,000 principal amount, equivalent to an initial conversion price of approximately $85.31 per share, a 27.5% premium to Delek's closing share price of $66.91 on September 24. Delek US also entered capped call transactions with an initial cap price of approximately $117.09 per share, a 75% premium to that September 24 closing price, to limit potential dilution from note conversions. The company plans to use part of the net proceeds to partially repay outstanding amounts under its Term Loan Credit Facility, including accrued interest, fees and expenses, and the offering is expected to close on September 29.
Delek US Energy IncDelek US priced a $400M 0.00% convertible notes offering and will use proceeds to partially repay its Term Loan Credit Facility, a financing/balance-sheet event.
