Delek Logistics common units jump 11 pct in debut
NEW YORK (AP) — Delek Logistics Partners LP's common units jumped more than 6 percent in their first day of trading on the New York Stock Exchange.
The units rose 6.4 percent to close at $22.35 Friday. Delek Logistics is a limited partnership formed by Delek U.S. Holdings Inc. to own crude oil and refined products logistics assets in southeastern U.S.
The Brentwood, Tenn.-based company sold 8 million common units for $21 each in its initial public offering. That was at the top end of its projected price range of $19 to $21.
The offering's underwriters, BofA Merrill Lynch, Barclays, Goldman, Sachs & Co. and Wells Fargo Securities, also were granted the option to buy up to an additional 1.2 million common units at the same price to cover possible over-allotments.
The offering is expected to close on or about Wednesday. When the offering closes, the public will own a 32.7 percent limited partner interest in Delek Logistics, or a 37.6 percent limited partner interest if the underwriters exercise their option in full.
Affiliates of Delek US Holdings Inc. will hold a 2 percent general partner interest and a 65.3 percent limited partner interest in Delek Logistics, or a 60.4 percent limited partner interest if the underwriters exercise their option in full, the company said.
The units are trading on the NYSE under the ticker symbol "DKL."