Howard Energy Partners closes $1B+ in financing in part to fund renewable diesel logistics hub

In Texas, Howard Energy Partners has closed on a series of strategic financing transaction, 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% 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. 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.