HF Sinclair Corporation Announces Redemption of HollyFrontier Corporation’s 5.875% Senior Notes due 2026

Rhea-AI Summary

HF Sinclair (NYSE: DINO) has announced the redemption of all outstanding 5.785% Senior Notes due 2026 issued by its subsidiary HollyFrontier The redemption is scheduled for February 16, 2025, and will be funded through the net proceeds of DINO's recent $1.4 billion 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, the 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

• Refinancing of debt through new senior notes offering of $1.4 billion
• Strategic debt management to potentially reduce interest expenses

Negative

• Additional debt burden from new $1.4 billion senior notes offering
• Potential higher costs due to make-whole redemption premium payment

Insights

Fixed Income Analyst

HF Sinclair's strategic debt refinancing move signals strong financial management and market opportunism. The redemption of the 5.875% notes, funded by the recent $1.4 billion senior notes offering, likely aims to optimize the company's debt structure and potentially reduce interest expenses. This timing is particularly noteworthy given the current interest rate environment and market expectations.

The refinancing demonstrates several key strengths:

• Strong market access, evidenced by the successful completion of the $1.4 billion senior notes offering
• Proactive liability management, addressing debt maturities well ahead of schedule
• Financial flexibility, as shown by the ability to execute large-scale refinancing

The 'make-whole' provision in the redemption terms is standard practice but represents an additional cost consideration. However, if the new notes were issued at a lower rate, the long-term interest savings could outweigh the immediate premium payment. This refinancing could potentially strengthen HF Sinclair's credit profile by extending debt maturities and optimizing interest costs, particularly valuable for a capital-intensive refining business operating in a cyclical industry.

DALLAS--(BUSINESS WIRE)-- HF Sinclair Corporation (the “Corporation”) (NYSE: DINO) today announced that it will redeem all of the outstanding 5.785% Senior Notes due 2026 (the “Notes”) of HollyFrontier Corporation, its wholly owned subsidiary. 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 16, 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 other 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/20250127293947/en/

Craig Biery, Vice President, Investor Relations

HF Sinclair Corporation

214-954-6510

Source: HF Sinclair Corporation

FAQ

When will HF Sinclair (DINO) redeem its 5.785% Senior Notes due 2026?

HF Sinclair will redeem the Notes on February 16, 2025 (the Redemption Date).

How much is HF Sinclair's (DINO) new senior notes offering worth?

HF Sinclair completed a registered offering of $1.4 billion aggregate principal amount of senior notes 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.

Who is the paying agent for DINO's 2026 Senior Notes redemption?

Computershare Trust Company, N.A. is serving as the paying agent for this transaction.