Delek Logistics Partners, LP 8-K

What Happened
Delek Logistics Partners, LP (DKL) announced it entered into a new syndicated credit agreement (the "New Credit Agreement") on March 26, 2026, providing up to $1,300.0 million of revolving commitments (the "Revolving Facility"). Truist Bank is the administrative agent and the facility is syndicated with several co-agents and lenders. The Partnership repaid in full and replaced its prior credit agreement (administered by Fifth Third) by borrowing under the new facility on the same date.

Key Details

• Revolving commitments: $1,300.0 million total; sublimits of $150.0 million for letters of credit and $50.0 million for swing line loans.
• Maturity: earliest of (i) March 26, 2031, (ii) 180 days before the earliest maturity of the Partnership’s 8.625% Senior Notes due 2029 if at least $500.0 million remain outstanding, or (iii) termination due to voluntary termination or certain defaults.
• Interest and fees: borrower choice of (a) base rate + margin (0.50%–1.50%) or (b) term SOFR + margin (1.50%–2.50%); unused commitments incur a commitment fee of 0.30%–0.50%. Swing loans bear base-rate pricing.
• Covenants and security: first‑priority liens on substantially all tangible and intangible assets; financial covenants include Total Leverage Ratio ≤ 5.25 (≤ 5.50 during Temporary Increase Period), Senior Leverage Ratio ≤ 3.75, and Interest Coverage Ratio > 2.00.
• Accordion: ability to increase commitments by up to the greater of $525.0 million or 100% of most recent Test Period EBITDA, subject to conditions.
• The new facility refinanced and satisfied the Prior Credit Agreement; certain ordinary surviving indemnities/contingent obligations under the prior agreement remain.

Why It Matters
This refinancing secures Delek Logistics’ near- to medium-term liquidity with a $1.3B committed facility and potentially significant expansion capacity via the accordion feature. The agreement sets specific leverage and coverage limits that the Partnership must meet each quarter and places the lenders in a secured position through first-priority liens on substantially all assets. For investors, the new facility affects the company’s debt profile, interest exposure (choice of base rate or SOFR pricing), and operational flexibility for working capital, permitted acquisitions, capital expenditures, and refinancing of other indebtedness.