News Releases

Baker Botts Represents Delek US Holdings, Inc. in Dropdown Transaction

Release

Deal Description: On March 31, 2020, Delek US Holdings, Inc. (NYSE: DK) (“Delek US”) and Delek Logistics Partners, LP (NYSE: DKL) (“Delek Logistics”) announced an agreement for the dropdown of the Big Spring gathering system to Delek Logistics for total consideration of $100 million in cash and 5.0 million common units representing limited partnership interest in Delek Logistics. The transaction is effective March 31, 2020 and is expected to be immediately accretive to Delek Logistics’ distributable cash flow per unit.

These assets and services are projected to generate incremental annual earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $30 to $32 million. Delek Logistics will finance the cash component of this dropdown through a combination of cash on hand and borrowings on its revolving credit facility.

Baker Botts L.L.P. represented Delek in the dropdown.

Baker Botts Lawyers/Office Involved:

Corporate: A.J. Ericksen (Partner, Houston); Ieuan List (Associate, Houston); Shumaila Dhuka (Associate, Houston)

Global Projects: Scott Looper (Partner, Houston); Austin Jennings (Associate, Houston); Casey Polivka (Associate, Houston)

Finance: Rachael Lichman (Partner, Houston); Chad Davis (Senior Associate, Houston)

Tax: Michael Bresson (Partner, Houston); Jared Meier (Senior Associate, Houston). Evan Skeenhttp: (Associate, Houston)

For more information, please see Delek’s news release by clicking here.

 

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Baker Botts is an international law firm of approximately 725 lawyers practicing throughout a network of 14 offices around the globe. Based on our experience and knowledge of our clients' industries, we are recognized as a leading firm in the energy and technology sectors. Since 1840, we have provided creative and effective legal solutions for our clients while demonstrating an unrelenting commitment to excellence. For more information, please visit bakerbotts.com.

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