HF Sinclair Corporation Announces Successful Early Results for Cash Tender Offer of Debt Securities
HF Sinclair Corporation Announces Early Results of Cash Tender Offer of Debt Securities
HF Sinclair Corporation (NYSE: DINO) has recently shared the promising early outcomes of its cash tender offer aimed at purchasing various outstanding notes. This announcement follows a previously disclosed tender offer, indicating strong interest from investors in the securities offer presented earlier.
As detailed in the official release, the corporation confirmed that all terms and conditions set forth in its Offer to Purchase remain intact and unchanged. One of the noteworthy aspects of this offering is that the financing condition expressed earlier has successfully been met, paving the way for the next steps in the tendering process.
Early Tender Deadline Results
The corporation reported that a significant volume of notes has been validly tendered for the offer. According to D.F. King & Co., Inc., the registered tender and information agent for this cash offer, the aggregated principal amounts of each series of notes as of the early tender deadline have been released, showcasing the level of commitment from investors.
For instance, the 6.375% Senior Notes due 2027, originally valued at approximately $399.87 million, saw tenders totaling around $361.07 million, with an expected acceptance of $150 million. This indicates a final proration factor of 41.5%, reflecting the high demand and competition for these particular notes.
In comparison, the 5.875% Senior Notes due 2026 revealed an equally robust interest, with tenders amounting to $448.09 million against a backdrop of $797.1 million in total outstanding. All aforementioned notes were confirmed to be accepted for purchase at 100% capacity, indicating a robust reception of this offering. Notably, another series of 5.875% Senior Notes due 2026, issued by HollyFrontier, indicated a valve of $202.9 million, with tendered amounts reaching $48.49 million, also accepted in full.
Important Dates and Considerations
Ideal for participation, the corporation specified the expected date for payments for the notes, with the Early Settlement Date set for January 28, 2025. Due to the aggregate limit reached on the 2027 Notes, HF Sinclair is not expected to accept any further tenders for this particular series, emphasizing the demand that has already been established. Furthermore, the overall tender offer is poised to remain open until February 7, 2025, granted there are no extensions or alterations to this timeframe.
It’s pertinent for holders who wish to participate post the early tender deadline that they would miss out on an additional premium of $30 per each $1,000 in principal amount, a factor that may affect decisions for those contemplating engagement.
To facilitate the tendering process, the method of calculating total tender offer consideration will be referenced against the specified fixed spreads. This incorporates the yields based on bid-side prices of relevant U.S. Treasury securities, as delineated in the initial Offer to Purchase. The designated dealer managers have a crucial role in determining the offer value, set to be announced on January 24, 2025.
Final Thoughts
The corporation emphasizes that all successful tenders that have been duly completed by the early deadline will be finalized for purchase, consequently retired, and canceled upon the forthcoming settlement day. It's vital to underscore that this announcement is not an invitation to buy nor a solicitation for securities. Holders are encouraged to evaluate individual circumstances and make informed choices regarding participation.
About HF Sinclair Corporation:
Based in Dallas, Texas, HF Sinclair Corporation stands as an independent energy company dedicated to producing high-value light products that include gasoline, diesel, jet fuel, and renewable fuels. The corporation's refineries, positioned across states like Kansas, Oklahoma, and New Mexico, serve a wide regional market, extending across various states while promoting environmental sustainability through renewable diesel production. With a diversified market strategy, HF Sinclair continues to establish itself as a key player within the petroleum sector.
For further questions or clarifications regarding the cash tender offer, interested parties should reach out to their designated contacts as elaborated in the release.