HF Sinclair Corporation Announces Partial Redemption of its 5.875% Senior Notes due 2026

Rhea-AI Summary

HF Sinclair (NYSE: DINO) has announced plans to redeem $195,000,000 of its 5.875% Senior Notes due 2026. The redemption is scheduled for February 21, 2025, and will be funded using proceeds from the company's recent $1,400,000,000 senior notes offering completed on January 23, 2025.

The redemption price will be the greater of 100% of the principal amount or the 'make-whole' redemption premium, plus accrued and unpaid interest. After the redemption date, these notes will no longer be outstanding, and interest will cease to accrue. Computershare Trust Company is serving as the paying agent for this transaction.

Positive

• Successfully raised $1.4 billion through senior notes offering
• Strategic debt management through partial redemption of higher interest notes

Negative

• Additional debt burden from new $1.4 billion senior notes offering

Insights

Financial Analyst

This strategic debt management initiative by HF Sinclair carries several significant implications for investors. The partial redemption of $195 million in 5.875% Senior Notes, funded through January's larger $1.4 billion senior notes offering, signals a comprehensive approach to liability management.

The timing of this redemption is particularly noteworthy within the current interest rate environment. While the specific terms of the January 2025 notes offering weren't disclosed, this move suggests HF Sinclair is likely capitalizing on opportunities to optimize its debt structure. The "make-whole" provision in the redemption terms protects bondholders but also indicates the company's confidence in achieving favorable refinancing terms.

This refinancing strategy has multiple potential benefits for HF Sinclair's financial position:

• Enhanced debt maturity profile through the extension of payment timelines
• Possible reduction in interest expenses, depending on the new notes' terms
• Improved financial flexibility through the management of near-term maturities
• Strengthened balance sheet structure supporting operational stability

For a refining company like HF Sinclair, maintaining optimal capital structure is important given the cyclical nature of the industry and substantial capital expenditure requirements. This proactive debt management approach demonstrates prudent financial stewardship, particularly important given the company's extensive refining operations across six states and its growing renewable diesel segment.

DALLAS--(BUSINESS WIRE)-- HF Sinclair Corporation (the “Corporation”) (NYSE: DINO) today announced that it will redeem $195,000,000 aggregate principal amount of its outstanding 5.875% Senior Notes due 2026 (the “Notes”). The redemption price for the Notes will equal the greater of (i) 100% of the principal amount of the Notes to be redeemed and (ii) the “make-whole” redemption premium specified in the indenture, as supplemented, governing the Notes, plus, in either case, accrued and unpaid interest to the Redemption Date (as defined below) The redemption of the Notes is scheduled to occur on February 21, 2025 (the “Redemption Date”). The Corporation intends to fund the redemption with the net proceeds of the Corporation’s registered offering of $1,400,000,000 aggregate principal amount of senior notes completed on January 23, 2025. On and after the Redemption Date, the Notes will no longer be deemed outstanding, interest will cease to accrue thereon and all rights of the holders of the Notes will cease, except for the right to receive the redemption price. This release does not constitute a Notice of Redemption of the Notes.

Computershare Trust Company, N.A. (the “Trustee”) is serving as the paying agent for this transaction. Copies of the Notice of Redemption and additional information relating to the redemption of the Notes may be obtained from the Trustee, 1505 Energy Park Dr., St. Paul, MN 55108, telephone: 1-800-344-5128.

About HF Sinclair Corporation

HF Sinclair Corporation, headquartered in Dallas, Texas, is an independent energy company that produces and markets high-value light products such as gasoline, diesel fuel, jet fuel, renewable diesel and lubricants and specialty products. HF Sinclair owns and operates refineries located in Kansas, Oklahoma, New Mexico, Wyoming, Washington and Utah. HF Sinclair provides petroleum product and crude oil transportation, terminalling, storage and throughput services to our refineries and the petroleum industry. HF Sinclair markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states, and supplies high-quality fuels to more than 1,500 branded stations and licenses the use of the Sinclair brand at more than 300 additional locations throughout the country. HF Sinclair produces renewable diesel at two of its facilities in Wyoming and also at its facility in New Mexico. In addition, subsidiaries of HF Sinclair produce and market base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and export products to more than 80 countries.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250211515052/en/

FOR FURTHER INFORMATION, Contact:

Craig Biery, Vice President, Investor Relations

HF Sinclair Corporation

214-954-6510

Source: HF Sinclair Corporation

FAQ

What is the amount of HF Sinclair's (DINO) senior notes redemption in 2025?

HF Sinclair (DINO) will redeem $195,000,000 of its 5.875% Senior Notes due 2026.

When is the redemption date for DINO's 5.875% Senior Notes?

The redemption date is scheduled for February 21, 2025.

How will HF Sinclair (DINO) fund the senior notes redemption?

The redemption will be funded using proceeds from the company's $1,400,000,000 senior notes offering completed on January 23, 2025.

What is the redemption price for DINO's 2026 Senior Notes?

The redemption price will be the greater of 100% of the principal amount or the 'make-whole' redemption premium, plus accrued and unpaid interest.