Delek US Holdings, Inc. (NYSE: DK) is launching a $400 million convertible senior notes offering due November 1, 2031, structured as a private placement under Rule 144A of the Securities Act of 1933. The deal includes an option for purchasers to acquire up to an additional $60 million within 13 days of the initial closing, raising the total potential proceeds to $460 million. The notes will be guaranteed by subsidiaries tied to Delek’s senior secured term loan and asset-based revolving credit facility, ensuring seniority in repayment priority.
The financing aims to fund capped call transactions to mitigate dilution from potential stock conversions, while also supporting general corporate purposes, including partial repayment of outstanding term loan amounts and payment of accrued interest and fees. Conversion of the notes is contingent on meeting specified conditions, with the company able to settle conversions via cash or common stock. Early redemption is restricted until November 6, 2029, unless less than 10% of the original principal remains outstanding. The notes will mature on November 1, 2031, unless converted or redeemed earlier under the terms.
Delek US operates a portfolio of petroleum refining, logistics, pipelines, and renewable fuels assets, with refineries in Texas, Arkansas, and Louisiana collectively handling 302,000 barrels per day of crude throughput. The company’s financial strategy reflects broader industry dynamics in the U.S. refining sector, where such structured debt offerings are increasingly common for capital-raising and operational flexibility.
