Delek US prices $400m convertible notes offering due 2031

Delek US Holdings, Inc. recently announced the pricing of a $400 million convertible senior note offering set to mature in 2031. The securities are guaranteed by subsidiaries that secure the company's senior secured term loan facility or asset-based revolving credit facility. Initial buyers have the option to purchase up to an additional $60 million in notes within 13 days of issuance.

The offering is projected to conclude on September 29, 2026, pending usual closing conditions. A portion of the net proceeds will be allocated to capped call transactions, while the rest will support general corporate purposes, including partial repayment of outstanding amounts under the term loan credit facility. The notes do not bear regular interest and are senior unsecured obligations.

Upon maturity, conversion of the notes into common stock is possible at a rate of 11.7219 shares for every $1,000 of principal amount, with an estimated conversion price of $85.31 per share. This represents a conversion premium of about 27.5% compared to the last reported sale price of $66.91 per share on September 24, 2026. The offering is restricted to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

Delek US Holdings operates in petroleum refining, logistics, pipelines, and renewable fuels, with a combined crude throughput capacity of 302,000 barrels per day.