HollyFrontier prices offering of $750M of 5.875% Senior Notes Due 2026

HollyFrontier Corp. (NYSE:HFC) has priced an offering of $750 million of its 5.875% Senior Notes that will mature April 1, 2026, pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission. The additional senior notes are being offered as additional notes to the company’s outstanding 5.875% Senior Notes due 2026, which the company sold in a public offering in March 2016 in an aggregate principal amount of $250 million. The additional senior notes will be issued at a price equal to 100.098% of the principal amount thereof, plus accrued interest from October 1, 2016, resulting in a yield to maturity of 5.860%.

The company intends to use the net proceeds from the offering to prepay its $350 million term loan and for general corporate purposes, which may include a portion of the purchase price for Petro-Canada Lubricants Inc. and capital expenditures.

Interest on the additional senior notes will be payable on April 1 and October 1 of each year. The first interest payment on the additional senior notes will be due on April 1, 2017, and will consist of interest from October 1, 2016 to that date. The offering is expected to close on November 21, 2016, subject to customary closing conditions.

Citigroup Global Markets Inc., Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Inc., MUFG Securities Americas Inc. and TD Securities (USA) LLC are acting as joint book-running managers for the offering.

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