HollyFrontier Corporation Announces Pricing of Senior Notes Offering
September 14 2020 - 9:38PM
Business Wire
HollyFrontier Corporation (NYSE:HFC) (“HollyFrontier” or the
“Company”) announced today that it has priced an offering of
$750 million aggregate principal amount of its senior notes,
consisting of $350 million aggregate principal amount of 2.625%
Senior Notes due 2023 (the “2023 Notes”) and $400 million aggregate
principal amount of 4.500% Senior Notes due 2030 (the “2030 Notes”
and, together with the 2023 Notes, the “Notes”) at a price to the
public of 99.894% of the principal amount of the 2023 Notes and a
price to the public of 99.824% of the principal amount of the 2030
Notes. The offering is expected to close on September 28, 2020,
subject to customary closing conditions.
The Company intends to use the net proceeds from the offering
for general corporate purposes, which may include capital
expenditures.
Interest on the Notes will be payable on April 1 and October 1
of each year. The first interest payment on the Notes will be due
on April 1, 2021.
BofA Securities, Inc., Citigroup Global Markets Inc., MUFG
Securities Americas Inc. and TD Securities (USA) LLC are acting as
joint book-running managers for the offering. The offering is being
made pursuant to an effective shelf registration statement that was
previously filed with the Securities and Exchange Commission and
only by means of a prospectus supplement and accompanying
prospectus, copies of which may be obtained from:
BofA Securities, Inc. NC1-004-03-43 Attn: Prospectus Department
200 North College Street, 3rd Floor Charlotte, North Carolina
28255-0001 Toll-free: 1-800-294-1322 E-mail:
dg.prospectus_requests@bofa.com
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
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
Notes in any state or jurisdiction in which such offer,
solicitation or sale of the 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 owns and operates refineries
located in Kansas, Oklahoma, New Mexico and Utah and markets its
refined products principally in the Southwest U.S., the Rocky
Mountains extending into the Pacific Northwest and in other
neighboring Plains states. In addition, HollyFrontier produces base
oils and other specialized lubricants in the U.S., Canada and the
Netherlands, and exports products to more than 80 countries.
HollyFrontier also owns a 57% limited partner interest and a
non-economic general partner interest in Holly Energy Partners,
L.P., a master limited partnership that provides petroleum product
and crude oil transportation, terminalling, storage and throughput
services to the petroleum industry, including HollyFrontier
Corporation subsidiaries.
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, the extraordinary market environment and effects of the
COVID-19 pandemic, including the continuation of a material decline
in demand for refined petroleum products in markets the Company
serves; risks and uncertainties with respect to the actions of
actual or potential competitive suppliers and transporters of
refined petroleum products or lubricant and specialty products in
the Company’s markets; the spread between market prices for refined
products and market prices for crude oil; the possibility of
constraints on the transportation of refined products or lubricant
and specialty products, the possibility of inefficiencies,
curtailments or shutdowns in refinery operations or pipelines,
whether due to infection in the workforce or in response to
reductions in demand; effects of governmental and environmental
regulations and policies, including the effects of current
restrictions on various commercial and economic activities in
response to the COVID-19 pandemic; 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 and consummating construction projects,
including the Company's ability to complete announced capital
projects, such as the conversion of the Cheyenne Refinery to a
renewable diesel facility and the construction of the Artesia
renewable diesel unit and pretreatment unit, on time and within
budget; the Company's ability to timely obtain or maintain permits,
including those necessary for operations or capital projects; the
ability of the Company to acquire refined or lubricant product
operations or pipeline and terminal operations on acceptable terms
and to integrate any existing or future acquired operations; the
possibility of terrorist or cyberattacks and the consequences of
any such attacks; general economic conditions, including
uncertainty regarding the timing, pace and extent of an economic
recovery in the United States; further deterioration in gross
margins or a prolonged economic slowdown due to COVID-19 could
result in an impairment of goodwill and / or additional long-lived
asset impairments; 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200914005941/en/
Richard L. Voliva III, Executive Vice President and Chief
Financial Officer Craig Biery, Vice President, Investor Relations
HollyFrontier Corporation 214-954-6510
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