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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