PHILADELPHIA, October 19, 2017: Morgan Lewis represented HollyFrontier Corporation in an equity restructuring agreement between Holly Energy Partners (HEP) and HEP Logistics Holdings, L.P. (HEP GP), a wholly-owned subsidiary of HollyFrontier and the general partner of HEP.
The agreement eliminates the incentive distribution rights held by HEP GP and converts HEP GP’s 2% general partner interest in HEP into a non-economic interest in exchange for the issuance by HEP of 37,250,000 of its common units to HEP GP, representing total equity value of $1.25 billion based on HEP’s previous closing day price of $33.56. Closing of the transaction is expected to occur in the fourth quarter of 2017.
The Morgan Lewis team was led by partner Benjamin Wills and associate Conor Larkin.