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HEP Closes Strategic Financing Transactions

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Howard Energy Partners (HEP) has closed on a series of strategic financing transactions, including its inaugural senior unsecured notes offering and an extension of its $1 billion revolving credit facility.

The company priced $400 million of 6.75 percent senior unsecured notes due 2027 at par. Pro forma for the transactions, the company has over $600 million of available liquidity and a long-term structure to prudently access institutional debt capital.

The proceeds from the transactions will, among other things, help finance the previously announced build-out of HEP’s major renewable diesel logistics facility in Port Arthur, Texas, which is underpinned by a long-term agreement with Diamond Green Diesel, a 50/50 joint venture between Valero Energy Corporation and Darling Ingredients Inc.

The construction of HEP’s state-of-the-art renewable diesel logistics facility is underway and the facility is expected to be in-service in the fourth quarter of 2022.

“In a year where we achieved record-breaking operational and financial performance, the closing of these financing transactions marks another significant milestone for HEP as we continue to position the company for long-term growth and value creation,” said HEP chairman and chief executive officer Mike Howard. “As we look forward to 2022 and beyond, we will actively pursue opportunities to scale our platform of critical midstream infrastructure and low-carbon-intensity energy assets.”

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