Delek Logistics Partners, LP (DKL) and its subsidiary Delek Logistics Finance Corp. announced a cash tender offer for all outstanding 7.125% senior notes due 2028. Holders who tender by the offer’s expiration on May 11, 2026 will receive $1,001.35 per $1,000 principal, plus accrued interest, with settlement expected on May 14, 2026.
In parallel, DKL disclosed a private placement of $800 million in aggregate principal amount of senior notes due 2034. The proceeds will be used to repurchase the 2028 notes, redeem a portion of the 8.625% senior notes due 2029, and cover associated premiums, fees, and expenses. The transaction is contingent on the successful completion of the bond offering and receipt of sufficient net proceeds.
The refinancing extends DKL’s debt maturity profile and reduces refinancing risk. As of the most recent quarter, the partnership carried a debt‑to‑equity ratio of 22.14 with total debt of $2.33 billion. Fitch Ratings assigned a ‘B+’ rating to the 2034 notes, and the company has a $1.3 billion revolving credit facility maturing in 2031 that provides additional liquidity. By moving debt to a longer‑dated instrument, DKL improves balance‑sheet flexibility while maintaining the ability to fund midstream expansion.
Financially, DKL reported Q1 2026 net revenues of $297.5 million and net income of $32.4 million, with depreciation and amortization of $36.5 million and interest expense of $51.6 million. Q1 2025 revenues were $249.93 million, and Q1 2026 adjusted EBITDA was $132 million, up from $123 million a year earlier. The company’s dividend yield stands at 8.4%, and the board approved a 53rd consecutive quarterly distribution increase to $1.13 per unit.
Management reaffirmed confidence in the company’s growth trajectory, citing record results and a robust pipeline of midstream projects, including the Libby 2 gas processing plant and expansion of sour gas processing and acid gas injection capabilities. The refinancing is positioned to support a planned $180 million–$190 million capital‑spending program in 2026, expected to generate approximately $75 million of incremental run‑rate EBITDA.
The transaction signals DKL’s continued focus on optimizing its capital structure while investing in growth. By extending maturities and reducing refinancing risk, the partnership aims to preserve financial flexibility and support its midstream expansion strategy without compromising liquidity.
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